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Overview

ICBC contributes EUR 30 million to EUR 830 million club lending facility to Dongfeng Motors to support the company's acquisition of 14% stake in PSA Peugeot Citroen (Linked to Record ID#101002 and #109002))

Commitments (Constant USD, 2023)$40,819,066
Commitment Year•2014Country of Activity•FranceDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2014
Last repayment (originally scheduled)
Oct 23, 2015

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

  • BNP Paribas S.A.
  • HSBC (Hong Kong and Shanghai Banking Corporation)
  • Société Générale S.A. (SocGen or Societe Generale)

State-owned Commercial Banks

  • Bank of China (BOC)
  • Bank of China (Hong Kong) Limited (BOCHK)

Receiving agencies

State-owned companies

  • Dongfeng Motor Co., Ltd. (DFM)

Loan description

2014 Bank of China and ICBC contributions to EUR 380 million club lending facility to Dongfeng Motors to support the company's acquisition of 14% stake in PSA Peugeot Citroën in France

Interest type•UnknownMaturity•1.648 years

Narrative

Full Description

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, Bank of China contributed EUR 200 million, 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.

Staff comments

1. The Chinese project title is 支标致雪铁龙集团收购项目. 2. PSA Peugeot Citroën, now known as Groupe PSA, was a major French automobile manufacturer. It was formed in 1976 through the merger of Peugeot and Citroën, and in 2016 it rebranded as Groupe PSA. In 2021, it merged with Fiat Chrysler Automobiles to form Stellantis. 3. Two Branches of Bank of China (Hubei and Shanghai) and Bank of China HK contributed EUR 200 million to this loan. The breakdown of each bank branch/subsidiary's contribution is unclear. For the time being, AidData assumes each branch contributed equally (EUR 66.667 million) to this loan. Hence, the domestic branches contributed approximately EUR 133.33 million while BOCHK contributed EUR 66.667 million. This issue warrants more investigation.