Skip to content
AidData logo

Overview

Bank of China provides EUR 46.975 million loan to Technify Motor GmbH for unknown purposes in 2016

Commitments (Constant USD, 2023)$56,666,485
Commitment Year•2016Country of Activity•GermanyDirect Recipient Country of Incorporation•GermanySector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 30, 2016
Last repayment (originally scheduled)
May 28, 2019

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

  • Technify GmbH (TMG）

Guarantors

State-owned companies

  • AVIC International Holding Corporation

Loan description

Bank of China provides EUR 46.975 million loan to Technify Motor GmbH for unknown purposes in 2016

Interest rate (t₀)•1.221%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•2.912 years

Narrative

Full Description

Project narrative

On June 30, 2016, the Bank of China entered into a EUR 46.975 million loan agreement with Technify GmbH — a Germany-incorporated limited liability company engaged in aircraft engine manufacturing, and a wholly owned subsidiary of Motto Investment Limited (BVI), itself owned by AVIC International Holding Corporation. The maturity of the loan is on May 29, 2019, and the interest rate is EURIBOR plus a 1.4% margin. The proceeds were used by the borrower for an unspecified purpose — the use of proceeds is unknown. This loan was guaranteed by AVIC International Holding Corporation.

Staff comments

1. The loan contract is not available. 2. Technify Motor GmbH is a Germany-incorporated aerospace engine manufacturer and a subsidiary of AVIC International Holding Corporation, a Chinese state-owned enterprise focused on international business operations in aviation and other high-tech sectors. 3. In July 2013, AVIC International Holding Corporation subsidiary Technify Motors GmbH acquired German-based Thielert Aircraft. Thielert’s 1.7L engine powered the MQ-10C Gray Eagle UAV, a derivative of the General Atomics Predator drone used by the U.S. Air Force (a defense article that is export controlled by the International Traffic in Arms Regulations, ITAR). This engine also has been used in the military versions of the Diamond Aircraft DA42,604 a largely composite twin-engine aircraft used for both manned and unmanned surveillance. Technify Motors GmbH key customers are: manufacturers of new piston engine-powered aircraft; fleets and owner/operators of existing aircraft that would convert from gasoline-fueled engines to diesel-fueled engines; owner/operators requiring maintenance and spare parts for their diesel-fueled aircraft engines; and developers/manufacturers/users of UAVs