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Overview

ICBC contributes to EUR 350 million syndicated loan to Avicem HK Ltd. for debt refinancing related to acquisition of Hilite International (Linked to Record ID#100941, #100942)

Commitments (Constant USD, 2023)$101,526,584
Commitment Year•2015Country of Activity•GermanyDirect Recipient Country of Incorporation•Hong Kong (China)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 5, 2015
Last repayment (originally scheduled)
Nov 4, 2018

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Commerzbank Aktiengesellschaft (Commerzbank AG)

State-owned Commercial Banks

  • Bank of China (BOC)
  • China Construction Bank Corporation (CCB)

Receiving agencies

State-owned companies

  • Avicem HK Ltd

Guarantors

State-owned companies

  • AVIC Electromechanical Systems Co., Ltd.

Loan description

Official sector PRC bank contributions to EUR 350 million syndicated loan to Avicem HK Ltd. for debt refinancing related to acquisition of Hilite International

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

On or before November 5, 2015, Bank of China contributed to an EUR 350 million syndicated loan agreement with Avicem HK Ltd. — a subsidiary of Avic Electromechanical Systems Co. Ltd., which is itself a subsidiary of Aviation Industry Corporation of China, Ltd. (AVIC) — for debt refinancing related to its 2014 acquisition of Hilite International (a German auto parts manufacturer). The borrowing terms of the loan included a maturity of three years and a guarantee from the parent company. The syndicate consisted of four banks: Bank of China as facility agent (captured via Record ID#100941), China Construction Bank (captured via Record ID#100942), Industrial and Commercial Bank of China (captured via Record ID#100943), and Commerzbank as coordinator. These four banks were the mandated lead arrangers and bookrunners. Avicem HK Ltd.'s acquisition of Hilite International from 3i Group -- a British multinational investment company -- in May 2014 valued Hilite International at EUR 473 million. Chinese banks may have provided debt for this acquisition.

Staff comments

1. The individual contributions of the 4 known lenders to this EUR 350 million syndicated loan are unknown. For the time being, AidData has assumed that each lender contributed equally (EUR 87,500,000) to the loan. 2. AVIC Electromechanical Systems Co.,Ltd. manufactures and markets aircraft products. The Company produces flight control subsystems, airborne suspension systems, aviation airborne fuel measurement systems, onboard hydraulic actuators, engine ignitions, drones, and other products. 3. Hilite International is a global automotive supplier specializing in the development and production of components and systems for engine and transmission applications, as well as thermal management solutions for electric and hybrid vehicles and hydrogen fuel cell systems. 4. Hilite International’s U.S. operations comprise three units: (1) a sales and R&D center in Orion, Michigan; (2) a production site for camphasing valves, on/off & PWM solenoids, cylinder deactivation valves and integrated solenoid module assemblies in Whitehall, Michigan; and a (3) production site for machining of rotors and stators for camphasers, assembly and testing of camphasers, and coil armature assemblies for 4WD and AWD applications in Dallas, Texas.