Narrative
Full Description
Project narrative
On December 29, 2016, the Supervisory Committee of Maanshan Iron and Steel Company Limited — a Chinese state-owned steel manufacturing company — approved a resolution for the provision of a guarantee by it to MG-VALDUNES S.A.S. — a France-incorporated wholly-owned subsidiary of Maanshan and owner of VALDUNES S.A.S., a France-based designer and manufacturer of railcar wheels for high-speed rail, axles, and wheel sets, headquartered in Valenciennes, France with two production bases in Dunkirk and Valenciennes — for its application from working capital loans from China Construction Bank Corporation (CCB). CCB, alongside the Bank of China (BOC) ultimately issued loan(s) to MG-VALDUNES at low-cost interest rates (1% to 2%) prior to 2021.
Staff comments
1. As it is known CCB ultimately issued loans to MG-VALDUNES and that it applied for a loan in December 2016, AidData assumes the loan went through the absence of other information. AidData has coded 2% as the interest rate as this is the maximum range it had (together with BOC, a minimum of 1%). Still, more specific information for this loan merits further investigation.