China Merchants Bank contributes EUR 30 million to EUR 174 million syndicated loan to Aier Eye Hospital Group for its acquisition of a controlling stake in Clinica Baviera (Linked to Record ID#102073)

Project narrative

In August 2017, a syndicate of seven banks, including the Industrial and Commercial Bank of China (Macau) Limited and the New York Branch of China Merchants Bank, entered into an EUR 174 million ($205 million) syndicated acquisition loan agreement with Aier Eye Hospital Group Co., Ltd. — a Chinese private eye hospital chain — to support its acquisition of a controlling stake in Spanish ophthalmic clinic chain Clinica Baviera, S.A.. ICBC (Macau) contributed EUR 20 million and China Merchants Bank contributed EUR 30 million to the loan syndicate. Record ID#102073 captures ICBC (Macau)'s contribution. Record ID#102074 captures China Merchants Bank's contribution. In addition to ICBC (Macau) and China Merchants Bank, the following lenders contributed the respective amounts to the loan syndicate: BNP Paribas S.A. (EUR 30 million), Chang Hwa Commercial Bank (EUR 20 million), China Minsheng Bank (EUR 34 million), CTBC Bank (EUR 20 million), and ICICI Bank Limited (EUR 20 million). BNP Paribas served as the original mandated lead arranger, bookrunner and underwriter of the facility. Chang Hwa and China Minsheng Bank served as mandated lead arrangers and bookrunners ahead of general syndication. ICBC (Macau), the New York Branch of China Merchants Bank, ICICI Bank, and CTBC joined during general syndication. The proceeds were to be used by the borrower to acquire an absolute controlling stake (almost 87% of the shares) in Clínica Baviera and two-thirds of the seats of its board of directors. The remaining 13% stake was retained by the founders and critical personnel of Clínica Baviera. Clínica Baviera is a Spanish-listed ophthalmic clinic chain, the largest such chain in Europe. Clínica Baviera operates in Spain, Germany, Italy, and Austin. In 2016, its turnover was EUR 92 million (RMB 700 million). The acquisition was worth EUR 152 million ($180.77 million; RMB 1.2 billion). It was expected to allow Aier to become the world's largest eye care healthcare provider and give it access into the European market, allowing China's medical services to be exported to Europe professionally and systematically. This was the largest ever merger in the international ophthalmic industry. Aier did not intend to de-list Clínica Baviera; Aier planned to list in Europe to become the world's only ophthalmic chain dual-listed in China and abroad.. As part of the deal, Clínica Baviera would retain its core management and medical team. The acquisition was completed on August 31, 2017.