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Overview

China Development Bank contributes $80 million USD to a $285 million USD syndicated loan to Bright Food for the acquisition of an 75% ownership stake in Manassen Foods

Commitments (Constant USD, 2023)$90,919,772
Commitment Year•2011Country of Activity•AustraliaDirect Recipient Country of Incorporation•Hong Kong (China)Sector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 25, 2011
Start (actual)
Nov 30, 2011
End (actual)
Nov 30, 2011
Last repayment (originally scheduled)
Nov 24, 2014

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)

Cofinancing agencies

Private Sector

  • Australia and New Zealand Banking Group (ANZ)
  • Commonwealth Bank of Australia (CBA) (CommBank)
  • Coöperatieve Rabobank U.A. (Rabobank)
  • National Australia Bank Limited (NAB)
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • Westpac Banking Corporation

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Bright Food (Australia) Co., Limited

Guarantors

State-owned companies

  • Bright Food (Group) Co., Ltd.

Loan description

China Development Bank contributions $80 million USD to a $285 million USD syndicated loan to Bright Food for the acquisition of an 75% ownership stake in Manassen Foods

Interest rate (t₀)•2.43417%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

In mid-August 2011, Chinese state-owned food and drink company Bright Food (Group) Co., Ltd. signed an agreement with CHAMP Private Equity for its wholly owned subsidiary Shanghai Sugar Cigarette & Wine (Group) Co., Ltd. (SSCW) (Chinese: 上海市糖業煙酒(集團)有限公司) to purchase CHAMP's 75% equity stake in Australian food company Manassen Foods Australia Pty Ltd. for $281.25 million AUD. This was, at the time of the acquisition, Bright Food's largest overseas acquisition. Between November 25 and December 1, 2011, a syndicate of seven banks — including China Development Bank (CDB) — entered into a $285 million USD syndicated loan with Bright Food (Australia) Co., Limited — a Hong Kong-incorporated special purpose vehicle and subsidiary of Bright Food — to facilitate the acquisition of Manassen Foods and for capital expenditure purposes. This loan carried a maturity period of three years and an interest rate of LIBOR plus a margin of 170 basis points (bps). Bright Food issued a guarantee for this loan. CDB contributed $80 million USD to the loan syndicate. In addition to CDB, the following lenders contributed the respective amounts to the loan syndicate: Australia and New Zealand Banking Group (ANZ) ($38 million USD), National Australia Bank Limited (NAB) ($38 million USD), Commonwealth Bank of Australia (CBA) ($34 million USD), Rabobank ($34 million USD), Sumitomo Mitsui Banking Corporation (SMBC) ($27 million USD), and Westpac Banking Corporation ($34 million USD). ANZ and NAB served as original mandated lead arrangers and bookrunners. CDB, CBA, Rabobank, SMBC, and Westpac served as mandated lead arrangers. The deal was oversubscribed at the sub-underwriting stage. The acquisition was completed in November 2011. Manassen Foods Australia Pty Ltd. is an Australian food company, with retail, catering, and exports arms. Manassen Foods' portfolio consisted of more than Australian and international retail brands such as Trident, Angas Park, Sunbeam, and Golden Days. CHAMP Private Equity retained a 10% stake in Manassen and founder Roy Manassen and Manassen's management retained a 15% stake in it. Bright Food planned to expand Manassen's international business via the Chinese market.

Staff comments

1. Many reports suggest that the face value of this loan was $315 million USD and it was signed in or around October 2011, such as Reuters' "更正:〔路透基点〕光明食品3.15亿美元联贷结案,五家银行参贷--RLPC(更新版)", for example. However, it appears the loan was not finalized and was later amended to a $285 million USD, as reported by FinanceAsia's "Loan week, November 25-December 1", which states the loan was signed around late November 2011 and lists a contribution breakdown. Additionally, $285 million USD more closely reflects the $281.25 million AUD cost figure reported in "Bright Food Singapore Holdings Pte. Ltd. Offering Circular dated 12 July 2017". Thus, AidData considers the $285 million USD figure more reputable and has coded this record accordingly. 2. Manassen Foods is also known as Food Holdings Pty Ltd, its parent company.