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Overview

China Eximbank contributes to RMB 7 billion syndicated loan to Unisplendour Corporation for acquisition of 51% ownership stake in H3C Technologies in the United States in 2015 (Linked to Record ID#109768)

Commitments (Constant USD, 2023)$582,575,237
Commitment Year•2015Country of Activity•United StatesDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2015
End (actual)
May 5, 2016
Last repayment (originally scheduled)
Dec 30, 2023

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Cofinancing agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned companies

  • Unisplendour Corporation Limited

Loan description

CDB and China Eximbank contributions to RMB 7 billion syndicated loan to Unisplendour Corporation for acquisition of 51% ownership stake in H3C Technologies in the United States in 2015

Interest type•UnknownMaturity•9 years

Narrative

Full Description

Project narrative

In 2015, Unisplendour Corporation Limited (紫光股份有限公司 or UNIS) — a wholly-owned subsidiary of Tsinghua Unigroup, a Chinese state-owned enterprise that is part of Tsinghua University — signed an RMB 7 billion syndicated loan agreement with China Development Bank and China Eximbank to facilitate its acquisition of a 51 percent ownership stake in Hewlett-Packard Enterprise's enterprise technology unit, H3C Technologies Co., Limited, for $2.5 billion. Hewlett-Packard Enterprise is an American multinational information technology company, and prior to its acquisition by UNIS, H3C Technologies Co., Limited (a digital solutions provider with expertise in cloud computing, big data, and artificial intelligence) was a Hong Kong-incorporated, wholly-owned subsidiary of Hewlett-Packard Enterprise. The RMB 9 billion loan carried a 9-year maturity and an unknown interest rate. It was backed by a corporate repayment guarantee from Tsinghua Unigroup. It took more than 500 days to close the deal, starting with a kickoff meeting in December 2014. While China Development Bank contributes to this loan (Record ID#109768), China Eximbank also contributed to this loan (Record ID#109769) The execution of the definitive transactional documents took place on May 21, 2015. On May 5, 2016, UNIS announced the completion of the acquisition of 51% equity stake in H3C Technologies Co., Limited from Hewlett-Packard Enterprise at a total price of approximately $2.5 billion. Shortly after the Chinese government issued its 'Delete America' directive in 2022, UNIS acquired the remaining 49% equity stake in H3C Technologies Co., Limited for $3.5 billion (by purchasing a 48% equity stake from HPE Cayman Inc. and a 1% equity stake from Izar Holding Co.) in 2023.

Staff comments

1. Acting as the PRC legal counsel to Unisplendour Corporation on this project, Zhong Lun Law Firm provided comprehensive and in-depth legal services for UNIS on important deal issues, including particularly the formation of bidding strategy, the use of A-share listed company to implement the cross-border acquisition, the negotiation of transaction documents, the handling of PRC and foreign regulatory procedures, the structuring of an innovative employee equity plan to provide A-share special incentives Zhong Lun’s project team was led by William Qiu and Johnson Zhu, with the support of Changyong Liu, Haiyan Lai, Yuanyuan Tao, Sarah Ma, Mona Hu, Qiuqi Wu, and et al. 2. The Chinese project title is 清华紫光跨境并购H3C. 3. This was considered to be a sensitive, technology industry transaction. 4. The breakdown of the two Chinese banks' contribution is unknown. For the time being, AidData estimates the banks contribtued equally (3,500,000,000 RMB).