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 — and Sichuan Yizhan Industrial Co., Ltd. — a Chinese state-owned holding company jointly owned by Sichuan Development International Holdings Limited (99.4901% stake) and SDH (0.5099% stake) — entered into up to a $44 million USD (or equivalent in Chinese yuan) loan agreement with Lianshi Investment Co., Ltd. (as overseas borrower) — a Hong Kong-incorporated wholly-owned subsidiary of Ligeance Aerospace Technology Co., Ltd., a Chinese multinational aviation manufacturer listed on the Shenzhen Stock Exchange — and Ligeance Aerospace Technology (as domestic/China borrower) to finance the working capital needs of Lianshi Investment's wholly-owned subsidiary, Derby, England-based aerospace component manufacturer Gardner Aerospace Holdings Limited. This loan carried a maturity period of one year and a fixed interest rate of 7%. The interest payment was due quarterly. Lianshi's obligations for the overseas portion of this loan were 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. Ligeance Aerospace's obligations for the domestic portion of this loan received a joint and several liability guarantee from Zhang Zheng. On April 28, 2022, the Board of Directors of Ligeance Aerospace Technology unanimously approved the loan. The proceeds were to be used by the borrowers to support the working capital needs of Gardney Aerospace Holdings.
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. 3. While this loan had domestic and overseas portions in China, the main intent remained supporting Gardner (which at the time was developing facilities in China). 4. The individual contribution from each lender to this $44 million USD syndicated loan is unspecified. For the time being, AidData assumes that each lender provided an equal contribution ($22 million USD each).