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Overview

Bank of China provides a €100.0 million EUR loan to KION Group AG for unspecified purposes (repaid in 2023) (Linked to Record ID#102197)

Commitments (Constant USD, 2023)$99,465,172
Commitment Year2022Country of ActivityGermanyDirect Recipient Country of IncorporationGermanyOverseas JurisdictionGermanySectorIndustry, Mining, ConstructionFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 14, 2022

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% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • KION Group AG

Guarantors

Private Sector

  • KION Group AG

Loan description

Bank of China provides a €100.0 million EUR loan to KION Group AG for unspecified purposes (repaid in 2023)

Interest typeVariable Interest Rate

Narrative

Full Description

Project narrative

On June 14, 2022, the Frankfurt Branch of the Bank of China (BOC) entered into two €100.0 million EUR bilateral loan agreements (€200.0 million EUR total) with KION Group AG — a German multinational firm that manufacturers materials handling equipment and is the world's second largest maker of forklift trucks that, at the time, was 46.5% owned by Chinese state-owned company Weichai Power Co., Ltd. with 0.1% owned by staff and 53.4% free-floating and traded on the Frankfurt Stock Exchange — for unspecified purposes. KION Group "generally" issues guarantees to the banks for its payment obligations. One loan carried an approximately four-year maturity period, a final maturity date in 2026, and an interest rate based on a variable with a provision that the lender may demand immediate repayment if a persons or persons acquired over 50% of KION Group's shares and cancel the loan. Record ID#102197 captures this loan. The other loan carried a face value of €100.00 million EUR, with an interest rated based on a variable interest rate and a maturity date sometime between 2023 and 2026. Record ID#102200 captures this loan. In 2022, KION Group entered into six bilateral loans worth €100.0 million EUR each for a total of €600.0 million EUR, including the two BOC loans. In 2022, €25 million EUR was repaid under one of these loans. Then, in 2023, the borrower repaid five bilateral loans — €475.0 million EUR of debt — including one of the BOC loans (Record ID#102200), some of the loans ahead of schedule. As of December 31, 2013, the remaining €100.0 million EUR BOC loan (Record ID#102197) was still available It has a total volume of €100.0 million (December 31, 2022: €575.0 million). Five bilateral bank loans with a total volume of €475.0 million were repaid in 2023, in some cases ahead of schedule. KION GROUP AG generally issues guarantees to the banks for Group companies’ existing payment obligations..