Narrative
Full Description
Project narrative
In March 2021, Nine Dragons Paper (Holding) Limited successfully acquired ND Paper Malaysia (Selangor) Sdn. Bhd [玖龙纸业马来西亚(雪兰莪)有限公司], which owns a facility in the town of Banting in Kuala Langat District that produces test liner, kraft liner, corrugated medium paper, paper and pulp. Then, in July 2021, ND Paper Malaysia (Selangor) Sdn. Bhd. — a special purpose vehicle and subsidiary of Nine Dragons Paper (Holding) Limited — signed a $500 million syndicated loan agreement with a group of banks for unspecified purposes. The loan carries a 5-year maturity (final maturity date: June 2026), but its interest rate is unknown. The Nine Dragons Paper (Holding) Limited issued a repayment guarantee in support of the loan. Participants in the syndicate included Bangkok Bank Plc, China Minsheng Bank, Industrial Bank Co., Ltd., DBS Bank (Hong Kong) Limited, and Bank of China (Hong Kong) Limited.
Staff comments
1. ND Paper Malaysia (Selangor) Sdn. Bhd is a subsidiary of Nine Dragons Paper (Holding) Limited, which is a company listed on the Hong Kong Stock Exchange which was established in 1995 with headquarters in Dongguan City, Guangdong Province. It is the second largest paper manufacturing group worldwide in terms of production capacity and China's leading paper producer. The Group has an annual design production capacity of approximately 18 million tons. 2. The individual contributions from each lender to the syndicated loan are unknown. For the time being, AidData assumes equal contributions ($100 million each) across the five known members of the syndicate. This issue warrants further investigation.