China Development Bank contributes to $280 million USD syndicated loan to Xuzhou Construction Machinery Group for acquisition of 52% equity in Schwing Group GmbH

Project narrative

During or prior to July 2012, a syndicate of 18 banks — including the Bank of China (BOC), the Industrial and Commercial Bank of China (ICBC), and China Development Bank Corporation (CDB) — entered into a $280 million syndicated loan to Xuzhou Construction Machinery Group (XCMG) for their acquisition of 52% equity in German concrete pump manufacturer Schwing Group GmbH. The loan carried a maturity of three years. Schwing hoped that XCMG would help them to expand onto Asian markets. On April 20, 2012, XCMG announced that it had officially signed an acquisition agreement with Schwing. The transaction was initially financed using a bridging loan, partially secured by a guarantee from XCMG. This initial bridge loan was replaced (refinanced) by the syndicated loan captured in this project. The acquisition was officially completed on July 6, 2012, for an undisclosed amount. The syndicate consisted of 18 banks, including BOC (captured by Record ID#101062), ICBC (captured by Record ID#101065), CDB (captured by Record ID#101064), Deutsche Bank, WGZ Bank, Commerzbank AG, Bayerische Landesbank (BayernLB), Landesbank Baden-Württemberg (LBBW), UniCredit Bank Austria, and Crédit Agricole as lead arranger and sole bookrunner.