Narrative
Full Description
Project narrative
In early September 2007, syndication closed on an agreement in which a syndicate of 24 banks — including China Construction Bank Corporation (CCB) — entered into a €1.08 billion EUR syndicated loan agreement with Suzlon Energy Limited — an Indian multinational wind turbine manufacturer — to support Suzlon Energy's acquisition of a 33.851% stake in REpower Systems AG, a German turbine manufacturer based in Hamburg. This loan was divided into four tranches: a €375 million EUR 'Term A' loan tranche with a maturity period of five years and an interest rate based a floating rate plus a margin of 165 basis points (bps); a €300 million EUR 'Term B' loan tranche with a maturity period of seven years and an interest rate based on a floating rate plus a margin of 185 bps; a €325 million EUR 'Term C' loan tranche with a maturity period of 18 months (1.5 years) and an interest rate based on a floating rate plus a margin of 100 bps; and a €100 million EUR 'Term D' loan tranche with a maturity period of 10 months (0.833 years) and an interest rate based on a floating rate plus a margin of 100 bps. Suzlon Energy Limited issued a guarantee for all four tranches {{see ID#193156 and #193160 CCB contributed €20 million EUR to the loan syndicate. In addition to CCB, the following lenders contributed the respective amounts to the loan syndicate: Commerzbank AG (€90 million EUR), ABN AMRO N.V. (€71.5 million EUR), Banco Espirito Santo de Investimento (€71.5 million EUR), HSBC Bank (€71.5 million EUR), HSH Nordbank AG (€71.5 million EUR), ICICI Bank (€71.5 million EUR), Intesa Sanpaolo S.p.A. (€71.5 million EUR), NordLB (€71.5 million EUR), Coöperatieve Rabobank U.A. (€71.5 million EUR), the State Bank of India (SBI) (€71.5 million EUR), WestLB AG (€71.5 million EUR), Bank of Baroda (€50 million EUR), KBC Group (€40 million EUR, BayernLB (€35.01 million EUR), Aozora Bank (€30 million EUR), KfW (€30 million EUR), Bank of Taiwan (€20 million EUR), Raiffeisen Zentralbank Österreich A.G. (RZB) (€20 million EUR), Mega International Commercial Bank (€10 million EUR), UniCredit Group (€10 million EUR), the Bank of East Asia (BEA) (€5 million EUR), Chung Hua Commercial Bank (CDIB) (€3.24 million EUR), and Chang Hwa Commercial Bank (€1.76 million EUR). ABN AMRO, ICICI Bank, and SBI served as bookrunners. Sub-underwriting was near close in July 2007. On June 2, 2007, Suzlon announced the completion of the acquisition, with it controlling 33.851% of REpower — its initial goal being 75% — and with an agreement to jointly run REpower Systems with other shareholders, France's Areva (30.15%) and Portugal's Martifer (23.08%), Suzlon previously having been competing with Areva to purchase a majority stake. The acquisition was expected to help Suzlon diversify into Europe and other markets and improve its technology. In 2013, Suzlon acquired 100% of the shares of REpower Systems. In February 2014, Repower Systems changed its name to Senvion SE. In January 2015, Suzlon Energy announced the sale of Senvion SE to Centerbridge Partners LP for €1 billion EUR/ It made the sale to reduce its debt burden
Staff comments
1. While it is known that CCB contributed €20 million EUR to the €1.08 billion EUR loan, it is unclear the breakdown of this contribution to the four tranches. For the time being, AidData has assumed that CCB contributed to each tranche, and has coded the maturity period of this record as the average maturity period [(5 + 7 + 1.5 + 0.833) / 4] = 3.58325 of the four tranches. This issue merits further investigation. 2. REpower Systems AG, now known as Senvion, was a German manufacturer of wind turbines, specializing in both onshore and offshore turbines.