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Overview

China Development Bank provides EUR 79 million loan to Hungarian Development Bank for Wanhua-BorsodChem Chlorine Production Plant Construction Project (Linked to Record ID#89910)

Commitments (Constant USD, 2023)$84,065,984
Commitment Year•2017Country of Activity•HungaryDirect Recipient Country of Incorporation•HungarySector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 13, 2017
End (actual)
Jun 26, 2018

Geospatial footprint

Map overview

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The project involved the Wanhua-BorsodChem Chlorine Production Plant Construction Project, a Hungarian chemical raw material manufacturing plant headquartered in Kazincbarcika, Northern Hungary. More detailed locational information can be found at https://www.openstreetmap.org/way/192612048.

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

  • China Development Bank (CDB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Wanhua-BorsodChem

State-owned Banks

  • Hungarian Development Bank (MFB)

Loan description

China Development Bank provides EUR 79 million loan to Hungarian Development Bank for Wanhua-BorsodChem Chlorine Production Plant Construction Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On May 13, 2017, China Development Bank (CDB) and the Hungarian Development Bank (MFB) signed an EUR 79 million loan agreement for the Wanhua-BorsodChem Chlorine Production Plant Construction Project. MFB subsequently on-lent the proceeds of the loan to Wanhua-BorsodChem, a special purpose vehicle and wholly owned subsidiary of Wanhua Industrial Group (Wanhua). The purpose of the project was to enable Wanhua-BorsodChem to construct an environmentally friendly chlorine production plant (also known as a membrane cell chlorine unit). By the end of 2017, the balance of the CDB loan was EUR 20 million. The trial operation of the new membrane cell chlorine unit started on June 26, 2018.

Staff comments

1. The EUR 79 million loan was supported by a larger $1 billion line of credit established between CDB and the MFB in June 2011 (see linked Record ID#89910). 2. Wanhua-BorsodChem was created through a 2011 merger of Wanhua Industrial Group and BorsodChem Zrt. The merger was financed with an EUR 1.1 billion syndicated loan from Bank of China, Bank of Communications, ICBC, and China Eximbank (see linked Record ID#89909).