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Overview

ICBC provides a €7.5 million EUR revolving credit facility to Ferretti for working capital purposes

Commitments (Constant USD, 2023)$9,000,142
Commitment Year•2017Country of Activity•ItalyDirect Recipient Country of Incorporation•ItalyOverseas Jurisdiction•Hong Kong (China)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 19, 2017
Last repayment (originally scheduled)
Dec 19, 2018

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

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

State-owned companies

  • Ferretti S.p.A.

Guarantors

State-owned companies

  • Ferretti International Holding S.p.A.
  • Weichai Holding Group Hong Kong Investment Co. Ltd.

Loan description

ICBC provides a €7.5 million EUR revolving credit facility to Ferretti for working capital purposes

Interest type•Variable Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

On December 19, 2017, the Hong Kong Branch of the Industrial and Commercial Bank of China (ICBC) entered into a €7,500,000.00 EUR revolving credit facility (RCF) agreement with Ferretti S.p.A. — an Italy-incorporated yachtmaker headquartered in headquartered in Forlì, Emilia-Romagna wholly owned by Ferretti International Holding S.p.A. owned by Weichai Holding Group Hong Kong Investment Co. Ltd., a Hong Kong-incorporated wholly-owned subsidiary of Weichai Group Holdings Limited, a China-incorporated wholly-owned subsidiary of Shandong Heavy Industry Group Co., Ltd. (SHIG), a Chinese provincial-owned multinational company owned by State-owned Assets Supervision and Administration Commission of Shandong Province (70%), Shandong SASAC wholly-owned subsidiary Shandong Guohui Investment Co., Ltd. (20%), and the Shandong Provincial Council for Social Security Fund (10%) (75% stake) (86.8% stake); by F Investments S.A., a Luxembourg-incorporated holding company for company director and Italian billionaire businessman Piero Ferrari for his family (13.2% stake); and by Butler Management Limited, an England and Wales-incorporated wholly-owned subsidiary of renamed Butler Investments S.A. (0.02% stake) — for working capital purposes. The RCF carried a maturity period of one year (revocable) and an interest rate based on a variable rate plus a margin of 1.5%. Weichai Holding Group Hong Kong Investment Co., Ltd. promised to maintain its 86.82% in Ferretti International Holding as a guarantee for the facility. The facility prohibited Ferretti from repaying any shareholder loan for an amount less than €200,000,000.00 EUR and that it had to maintain a financial covenant of the adjusted net leverage ratio (total liability except shareholder loan-cash)/(Total equity + shareholder loan) less than or equal to 1.8x. The proceeds were to be used by the borrower to support working capital or to repay existing financial exposures due to the purchase of raw materials or products related to the manufacture of yachts. As of December 31, 2018, €7,500,000.00 EUR was outstanding under the facility. As of June 30, 2019, €2,500,000.00 EUR was outstanding.