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Overview

Agricultural Bank of China (London Branch) contributes to a €500 million EUR loan to Volkswagen AG for unspecified purposes

Commitments (Constant USD, 2023)$150,002,365
Commitment Year•2017Country of Activity•GermanyDirect Recipient Country of Incorporation•GermanyOverseas Jurisdiction•United KingdomSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 25, 2017

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% host country ownership

Funding agencies

State-owned Commercial Banks

  • Agricultural Bank of China (ABC)

Receiving agencies

Private Sector

  • Volkswagen AG (Volkswagen Group)

Loan description

Agricultural Bank of China branch contrbutions to €500 million EUR loan to Volkswagen AG for unspecified purposes

Interest type•Unknown

Narrative

Full Description

Project narrative

On May 25, 2017, branches of the Agricultural Bank of China (ABC) in Tianjin, Frankfurt, Dubai and the United Kingdom entered into a €500 million EUR loan agreement with Volkswagen AG — a German car manufacturer — for unspecified purposes. This loan was one of the first to be given by a Chinese state company to a large multinational corporation, and ABC hoped it would improve the reputation of Chinese banks. In 2016, China was the most important market for the Volkswagen.

Staff comments

1. 'AG' is an abbreviation for the German word Aktiengesellschaft, which literally translates to 'stock corporation' or 'shares corporation' in English. AG companies trade publicly on stock exchanges with the majority of companies trading on the DAX. 2. The individual contributions from each branch of Agricultural Bank of China to the syndicated loan are unspecified. For the time being, AidData assumes that each lender provided equal contributions (EUR 125 million).