Bank of China (Europe) Warsaw Branch provides loan to China Everbright International to facilitate its acquisition of NOVAGO Sp. z o.o.

Project narrative

Prior to July 5, 2016, the Warsaw Branch of Bank of China (Europe) S.A. issued a loan to China Everbright International Limited — a Hong Kong-incorporated and based Chinese environmental resource management listed on the Stock Exchange of Hong Kong with state-owned China Everbright Group Ltd. its largest shareholder at 41.40% — to facilitate its acquisition of NOVAGO Sp. z o.o.. NOVAGO is a Polish waste management company, the largest solid waste disposal company in Poland. It is based in Mława. NOVGO had reported revenues of €30 million EUR in 2015. The acquisition of NOVAGO was to help Everbright's expansion into Central and Eastern Europe using the experience of NOVAGO. NOVAGO was looking for an investor to improve its market position, expand its operations, and modernize its technology. Analysts characterized Polish President's Andrzej Duda state visit to China in November 2016 and Chinese President Xi Jinping's state visit to Poland in June 2016 as facilitating the acquisition. On June 26, 2016, China Everbright International Ltd. agreed to acquire 100% of the equity interest in NOVAGO from private equity firm Abris Capital Partners for approximately €123 million EUR ($137 million USD). As part of transaction, China Everbright International would pay €118 million EUR as equity purchase price and €5 million EUR land bank. The transaction was subject to approval of Poland's Office of Competition and Consumer Protection. The acquisition was completed on August 31, 2016, with China Everbright International paying €119,458,000 EUR ($1,022,102,000 HKD). This was the largest Chinese investment project in Poland done by a Chinese enterprise and the largest acquisition in the environmental treatment industry in Central and Eastern Europe. BOC's role was described as part of its promotion of the Belt and Road Initiative.