Bank of China contributes to $103 million syndicated loan for Texhong Galaxy's textile production plant in Vietnam

On April 20, 2016, a group of eight foreign and Vietnamese banks — including Bank of China's Ho Chi Minh City Branch — signed a $103 million syndicated loan agreement with Texhong Galaxy Technology Limited, a Vietnam-based special purpose vehicle and subsidiary of Texhong Textile Group. The loan’s final maturity date April 2023. Texhong Textile Group Limited issued a corporate guarantee in support of the loan. The borrower was expected to use the proceeds of the loan to finance the development of Texhong Galaxy's production plant in Haiha Industrial Park Park, Hai Ha District, and Quang Ninh Province. This project reached implementation, but its precise implementation start and end dates are unknown.

Additional details

1. The size of Bank of China’s contribution to the $103 million syndicated loan is unknown. For the time being, AidData assumes that all 8 members of the syndicate made equal contributions ($12.875 million). 2. The loan agreement contains a requirement that Mr. Hong Tianzhu shall maintain, directly or indirectly, the status of the largest individual shareholder of Texhong Galaxy Technology Limited and maintain the position of chairman of the Texhong Textile Group Limited. 3. Texhong Textile Group is a leading Chinese yarn manufacturer.

Number of official sources

3

Number of total sources

6