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Overview

China Eximbank provides a loan to Chongqing Polycomp International Corporation for acquisition of 60% equity stake in Abahsain Fiberglass ME (AFG)

Commitments (Constant USD, 2023)$21,713,397
Commitment Year•2013Country of Activity•BahrainDirect 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
Jan 1, 2013
Start (actual)
Jan 1, 2013
End (actual)
Jan 1, 2013

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

  • Chongqing Polycomp International Corporation

Loan description

China Eximbank provides a loan to Chongqing Polycomp International Corporation for acquisition of 60% equity stake in Abahsain Fiberglass ME (AFG)

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2013, the Chongqing Branch of the Export-Import Bank of China issued an loan to a Chinese state-owned company, Chongqing Polycomp International Corporation, to finance the acquisition of a 60% controlled interest (worth approximately $30 million USD) in Abahsain Fiberglass ME (AFG) from Saudi Fransi Capital (SFC) and establish CPIC Abahsain Fiberglass Company (CPIC AFG). The borrowing terms of the loan are unknown. The acquisition was successfully completed in 2013; however, the precise completion date is unknown.

Staff comments

1. The face value of the China Eximbank loan is unknown. However, given that the total cost of the acquisition was approximately $30 million USD 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 $21 million USD. 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. 2. The Chinese project title is 收购巴林AFG公司60%股权项目. 3. In 2008, Chongqing Polycomb International Corp (CPIC), one of the largest producers of glass fiber in China, and Abahsain Fiberglass ME (AFG), producing ECR glass fiber in Bahrain, signed a memorandum of understanding to establish a joint venture for a glass fiber manufacturing center in Bahrain. AFG was established in 2005.