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Overview

Sichuan Development International Holdings provides a $10 million USD loan to Gardner Aerospace Holdings to support its daily operating capital needs

Commitments (Constant USD, 2023)$10,317,338
Commitment Year•2020Country of Activity•United KingdomDirect Recipient Country of Incorporation•United KingdomOverseas Jurisdiction•Hong Kong (China)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 31, 2020
First repayment (originally scheduled)
May 31, 2021
Last repayment (originally scheduled)
May 31, 2021

Geospatial footprint

Map overview

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The purpose of this project was to provide a loan to Lianshi Investment to meet the operational and business development needs of Gardner Aerospace Holdings Limited. More detailed locational information can be found at: https://www.openstreetmap.org/way/70995755

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 companies

  • Sichuan Development International Holdings Limited

Receiving agencies

Private Sector

  • Gardner Aerospace Holdings Limited

Guarantors

Private Sector

  • Ligeance Aerospace Technology Co., Ltd. (LAT) (formerly Shaanxi Ligeance Mineral Resources Co. Limited (SLMR))

Collateral providers

Private Sector

  • Ligeance Aerospace Technology Co., Ltd. (LAT) (formerly Shaanxi Ligeance Mineral Resources Co. Limited (SLMR))

Loan desecription

Sichuan Development International Holdings provides a $10 million USD loan to Gardner Aerospace Holdings to support its daily operating capital needs

Grace period•1 yearsInterest rate (t₀)•7%Interest type•Fixed Interest RateMaturity•1 years

Collateral

This loan was secured by a pledge of 100% of the equity of Lianshi Investment Co., Ltd. by Ligeance Aerospace Technology Co., Ltd.

Narrative

Full Description

Project narrative

Sichuan Development International Holdings Limited — a Hong Kong-incorporated state-owned enterprise and wholly-owned subsidiary of Sichuan Development Holding Co., Ltd. (SDH), the wholly state-owned investment arm of the State-owned Assets Supervision and Administration Commission of Sichuan Provincial Government — entered into a $10 million USD loan agreement with Gardner Aerospace Holdings Limited — an England and Wales-incorporated Derby, England-based aerospace component manufacturer wholly-owned by Ligeance Aerospace Technology Co., Ltd., a Chinese multinational aviation manufacturer listed on the Shenzhen Stock Exchange — to support its daily operating capital needs. This loan carried a maturity period of one year and a fixed interest rate of 7%, with a one-time withdrawal. The interest payment was due quarterly, with the principal repayment due upon maturity (a grace period of one year). This loan was secured by (i.e. collateralized against) a pledge of 100% of the equity of Lianshi Investment by Ligeance Aerospace Technology. Ligeance Aerospace Technology and the controlling shareholder of Ligeance Aerospace Technology, Mister Zhang Zheng each provided a joint and several liability guarantee for the loan. On May 31, 2020, the Board of Directors of Ligeance Aerospace Technology unanimously approved the loan. The proceeds were to be used by the borrower to support its daily operating capital needs, specifically to assist it during the challenges caused by the COVID-19 pandemic.

Staff comments

1. In June 2017, Chinese industrial group Shaanxi Ligeance Mineral Resources Co. Limited (SLMR) acquired Gardner Aerospace Holdings Limited, a United Kingdom-based aerospace components (metallic detailed parts) manufacturer and a supplier for Airbus, for £326 million GBP ($422 million USD). This acquisition was completed through a subsidiary called Ligeance Investments Ltd. {{see ID#212220; #212219; and #212223}}. Gardner manufactures structural assemblies and parts for the aerospace industry, such as structures and parts for wing spars and fuselage frames. It has five manufacturing facilities in the United Kingdom and other facilities in France, Poland and India from which it supplies a range of products including door components, welded ramps, wing brackets and wing spars {{see ID#212222}}. 2. SDH indirectly owns shares in Ligeance Aerospace Technology.