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Overview

Bank of China provides €1.44 billion EUR loan to Beijing Enterprises Holdings Limited for the acquisition of EEW Energy

Commitments (Constant USD, 2023)$1,737,088,635
Commitment Year•2016Country of Activity•GermanyDirect Recipient Country of Incorporation•Hong Kong (China)Overseas Jurisdiction•LuxembourgSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2016
Start (actual)
Mar 3, 2016
End (actual)
Mar 3, 2016

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

  • Bank of China (BOC)

Receiving agencies

State-owned companies

  • Beijing Enterprises Holdings Limited

Loan description

Bank of China provides EUR 1.44 billion loan to Beijing Enterprises Holdings Limited for acquisition of EEW Energy

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2016, the Luxembourg Branch of Bank of China (BOC) entered into a €1.44 billion EUR loan agreement with Beijing Enterprises Holdings Limited to finance its acquisition of German waste-to-energy business EEW Energy. A Swedish investment company — EQT — sold EEW through an auction between the Beijing Enterprises and three other selected bidders: a consortium of China Tianying and Ping An; a consortium of Beijing Capital and Steag; and Fortum. The winning bid of Beijing Enterprises was worth €1.44 billion. Beijing Enterprises bought EEW to secure technology it hopes will enable Beijing to combat its waste problem. The deal was financially advised by Morgan Stanley for EQT, and by Lazard and UBS for Beijing Enterprises. This deal was completed on March 3, 2016.

Staff comments

1. EEW Energy is a leading European company focused on the thermal treatment of waste and sewage sludge to generate energy. They operate multiple plants that produce electricity, district heating, and process steam by incinerating waste materials. EEW aims to contribute to a sustainable circular economy by converting waste into usable energy and reducing reliance on fossil fuels.