China Development Bank provides RMB 800 million loan for Negeri Sembilan Glass Factory Construction Project (Linked to Project ID#62383)

In January 2015, Zhuzhou Kibing Group Co., Ltd. (also known as Kibing Group or 株洲旗滨集团股份有限公司) — a large enterprise group in China that mainly produces high-end glass products such as high-quality float glass, energy-saving glass, solar glass and ultra-thin glass, with production bases in Hunan, Fujian, Guangdong and Zhejiang provinces — announced plans to construct a new float line (glass factory) in Malaysia. It established a special purpose vehicle and wholly-owned subsidiary called Kibing Group (M) Sdn Bhd [also known as Kibing Group (Malaysia) Co., Ltd. or 旗滨集团（马来西亚）有限公司] for this purpose on October 23, 2014. Then, on May 16, 2015, Kibing Group disclosed that it would invest RMB 1.175 billion in the construction of a glass factory — with two production lines and the capacity to produce 1400 tons per day of clear float glass 3~19mm thick — in the city of Seremban within the district of Seremban and the state of Negeri Sembilan. In November 2015, Kibing Group applied for two loans on behalf of Kibing Group (M) Sdn Bhd: an RMB 800 million loan with a two year maturity from the Fujian Branch of China Development Bank (CDB) and a $6.5 million (approximately RM 24 million) loan with a one year maturity from Bank Of China (Malaysia) Berhad. Subsequent financial statements from Kibing Group indicate that the CDB loan was approved and Kibing Group issued a corporate guarantee in support of the CDB loan. However, it is unclear if the Bank of China loan was approved. United Overseas Bank may have also issued an RMB 24 million loan to Kibing Group (M) Sdn Bhd in support of the project. The first glass production line was put into operation on March 20, 2017 and the second glass production line was put into operation in June 2017. The CDB loan commitment is captured via Project ID#62461 and the Bank of China loan is captured (as a pledge) via Project ID#62383

Additional details

1: The Chinese project title is LOW-E在线镀膜和高档多元化玻璃生产线的. 2: The official commitment (CDB loan agreement) date is unknown. For the time being, AidData has set the commitment year to the year in which the CDB loan application was submitted (2015).

 3: Financial reporting by Kibing Group suggests that CDB may have ultimately issued two separate loans for this project (collectively worth RMB 800 million): a $70 million loan and an RMB 320 million. This issue requires further investigation.

Number of official sources

5

Number of total sources

11