Bank of China contributes EUR 133.33 million to EUR 830 million club lending facility to Dongfeng Motors to support the company's acquisition of 14% stake in PSA Peugeot Citroën (Linked to Record ID#101010 and #109002)

Project narrative

In March 2014, Dongfeng Motor Group finalized an agreement to acquire a 14% stake in PSA Peugeot Citroën (PSA), a French automaker. The acquisition was supported by a EUR 830 million syndicated loan facility agreement between Dongfeng Motor Group with the Hubei Branch of Bank of China, the Shanghai Branch of Bank of China, Bank of China (Hong Kong) Limited (BOCHK), BNP Paribas, HSBC, ICBC, and Société Générale. The facility carried a maturity of 1.648 years (final maturity date: October 23, 2015) and an unknown interest rate. Negotiations for Dongfeng Motor to acquire a 14% stake in PSA began in late 2013, with the hope of resuscitating PSA's finances, which were in poor shape. According to the Wall Street Journal, allowing Dongfeng Motor to take a stake in PSA would allow the company to have accessible to the Chinese financing market, with the possibility of entering into financing deals with Chinese official lenders. The deal was ultimately completed in March 2014. HSBC contributed EUR 350 million, the three branches Bank of China contributed EUR 200 million in total, BNP Paribas contributed EUR 150 million, Société Générale contributed EUR 100 million, and ICBC contributed EUR 30 million to the syndicated loan. Bank of China's contribution is captured via Record ID#101002, while ICBC's contribution is captured via Record ID#101010.