Overview

China Eximbank provides M&A loan to facilitate Guangken Rubber's acquisition of Thai Hua Rubber Public Limited

Commitments (Constant USD, 2023)$137,877,633

Commitment Year•2016Country of Activity•ThailandDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Aug 1, 2016

Start (actual): Aug 1, 2016

End (actual): Aug 1, 2016

Geospatial footprint

Map overview

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China Eximbank provides financing support to Guangken Rubber's acquisition of Thai Hua. More detailed locational information can be found at: https://www.openstreetmap.org/relation/2938032#map=13/13.7721/100.5837

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 Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

Guangken Rubber Group Ltd.

Loan desecription

China Eximbank provides M&A loan to facilitate Guangken Rubber's acquisition of Thai Hua Rubber Public Limited

Interest type•Unknown

Narrative

Full Description

Project narrative

In August 2016, Guangken Rubber acquired a 60% equity stake in Thai Hua Rubber Public Limited, which is headquartered in Bangkok, for RMB 1.2 billion. The Guangdong Branch of China Eximbank provided an M&A loan to Guangken Rubber (Trang) Co. Ltd. to finance the acquisition from a PSL special fund.

Staff comments

1. The acquisition is referred to as 广垦橡胶并购泰华项目 in Chinese. 2. The face value of the China Eximbank loan is unknown. However, given that the total cost of the acquisition was RMB 1.2 billion and most China Eximbank M&A (overseas investment) loans cover at least 70% of the total cost of the acquisition, AidData assumes for the time being that the face value of the China Eximbank loan was roughly equivalent to RMB 840 million. This issue warrants further investigation. See slide 13 of https://www.dropbox.com/scl/fi/l59pewju61dhll79k8msy/2.EXIM-Bank.pptx?rlkey=4ffouewoknm33jnz3dykii2i4&dl=0 for more information on the standard terms and conditions that govern M&A (overseas investment) loans from China Eximbank.