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Overview

China Eximbank provides $84 million loan to Youngor Group for the acquisition of Smart Shirts

Commitments (Constant USD, 2023)$139,571,421
Commitment Year•2007Country of Activity•United StatesDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 1, 2007
Start (actual)
Jan 8, 2008
End (actual)
Jan 8, 2008

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Private Sector

  • Youngor Group Co., Ltd.

Loan description

China Eximbank provides $84 million loan to Youngor Group for the acquisition of Smart Shirts

Interest type•Unknown

Narrative

Full Description

Project narrative

On November 6, 2007, Kellwood Company, Kellwood Asia Limited, and Youngor Group Co., Ltd. (a public textiles and clothing enterprise in Ningbo, Zhejiang, China) signed a share purchase agreement. Youngor Group Co., Ltd agreed to purchase the Smart Shirts business under Kellwood Asia Ltd. and its property assets for $121 million. It secured a $84 million China Eximbank M&A (overseas investment) loan for this purpose. Then, on January 8, 2008, Kellwood Company announced that it completed the sale of its Smart Shirts manufacturing operations and related real estate assets in two separate transactions resulting in gross proceeds of approximately $162 million in cash in the aggregate. Kellwood Company received approximately $121 million in cash at closing from the sale of the Smart Shirts business from Youngor Group Co., Ltd.

Staff comments

1. See slide 13 of https://www.dropbox.com/scl/fi/l59pewju61dhll79k8msy/2.EXIM-Bank.pptx?rlkey=4ffouewoknm33jnz3dykii2i4&dl=0 for more information on the standard terms and conditions that govern M&A (overseas investment) loans from China Eximbank. 2. Smart Shirts is a menswear manufacturing and marketing operation. It makes shirts for international brands and 95 percent of its products are sold in the US and Canada, with the rest going to Europe and Asia. Kellwood Asia bought the Hong Kong business in 1982. 3. The November 6, 2007 share purchase agreement can be accessed in its entirety via https://contracts.justia.com/companies/kellwood-co-54398/contract/903388/. 4. The Chinese project title is 持雅戈尔公司收购全球衬衫大鳄——美国KELLWOOD.