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Overview

Bank of China provides a €100 million EUR loan to Synutra France International for the construction of a drying facility in Carhaix

Commitments (Constant USD, 2023)$137,284,596
Commitment Year•2013Country of Activity•FranceDirect Recipient Country of Incorporation•FranceOverseas Jurisdiction•FranceSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2013
Start (actual)
Jan 10, 2014
End (planned)
Dec 31, 2014
End (actual)
Sep 28, 2016
Last repayment (originally scheduled)
Dec 30, 2020

Geospatial footprint

Map overview

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The proceeds were used by the borrower to finance the construction of a drying facility with total plant area of 200,000 square meters and a total construction area of 40,249 square meters, located in Carhaix in the department of Finistere in the Brittany region) that would manufacture powdered milk and fat-enriched demineralized whey for Synutra with production capacity of up to 100,000 tons annually. More detailed locational information can be found at https://www.openstreetmap.org/way/573697371

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 Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • Synutra France International SAS

Loan description

Bank of China provides a €100 million EUR loan to Synutra France International for the construction of a drying facility in Carhaix

Interest type•Variable Interest RateMaturity•8 years

Collateral

The loan was secured by all the long-lived assets of Synutra France International SAS.

Narrative

Full Description

Project narrative

In or around 2013, the Paris Branch of the Bank of China (BOC) entered into a €100 million EUR loan agreement with Synutra France International SAS — a France-incorporated wholly-owned subsidiary of Synutra International, Inc., a Delaware-incorporated infant formula and other nutritional formula company headquartered in Qingdao, Shandong, China listed on NASDAQ Global Select Market — for the construction of a drying facility in Carhaix. The loan carried an interest rate based on LIBOR and a maturity period of eight years, commencing from the actual drawdown date. The loan was secured by (i.e. collateralized against) all the long-lived assets of Synutra France International SAS, the French subsidiary of Synutra International responsible for the construction of a drying facility. As of March 31, 2015, BOC had disbursed €47 million EUR. As of March 31, 2016, BOC had disbursed €86 million EUR. The proceeds were used by the borrower to finance the construction of a drying facility with total plant area of 200,000 square meters and a total construction area of 40,249 square meters, located in Carhaix in the department of Finistere in the Brittany region) that would manufacture powdered milk and fat-enriched demineralized whey for Synutra with production capacity of up to 100,000 tons annually. The facility would comply with both European Union (EU) and China's manufacturing standards and production. The project was expected to provide safe and nutritious formula to more infants in China. Over 2013, Synutra received key regulatory approvals and construction permits and the project also received the internal credit approval within BOC for the construction period financing. The Chinese government via the National Development and Reform Commission, the Ministry of Commerce, and the State Administration of Foreign Exchange (SAFE) were required. The facility was expected to employ approximately between 75 and 100 employees. Operational commissioning was expected to occur by the end of 2014. The groundbreaking ceremony was held on January 10, 2014. The facility was opened on September 28, 2016.