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Overview

Bank of China provides a loan to MG-VALDUNES for working capital purposes (June 2016) (Linked to Record ID#104311)

Commitment Year•2016Country of Activity•FranceDirect Recipient Country of Incorporation•FranceOverseas Jurisdiction•FranceSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 15, 2016

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project was a loan to MG-Valdunes S.A.S., a French company headquartered at 12 Rue Gustave Delory, 59125 Trith-Saint-Léger, France. More detailed locational information can be found at: http://openstreetmap.org/way/175375343

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

  • MG-VALDUNES S.A.S.

Guarantors

State-owned companies

  • Maanshan Iron and Steel Company Limited) (Masteel) (Magang)

Loan desecription

Bank of China provides a loan to MG-VALDUNES for working capital purposes (June 2016)

Interest rate (t₀)•2%Interest type•Unknown

Narrative

Full Description

Project narrative

On January 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 the Bank of China. Record ID#104311 captures this loan. On June 15, 2016, the Supervisory Committee of Maanshan Iron and Steel Company Limited approved a resolution for the provision of a guarantee by it to MG-VALDUNES S.A.S. for its application from working capital loans from the Paris Branch of BOC. Record ID#104312 captures this loan. BOC, alongside China Construction Bank Corporation, 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 BOC ultimately issued loans to MG-VALDUNES and that it applied for a loan in June 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 CCB, a minimum of 1%). Still, more specific information for this loan merits further investigation.