China Eximbank provides M&A loan to facilitate Harvest International New Energy's acquisition of Alter NRG Corp

Project narrative

In 2015, China Eximbank and Harvest International New Energy Co., Ltd. -- a special purpose vehicle incorporated in Delaware and wholly-owned subsidiary of Sunshine Kaidi New Energy Group Co, Ltd. -- signed an M&A loan agreement. The borrowing terms of the loan are unknown. However, it is known that he borrower was expected to use the proceeds of the loan to finance the acquisition of Alter NRG Corp ("Alter NRG") for CAD 147 million. The loan was collateralized against Sunshine Kaidi New Energy Group Co.’s 100% equity stake in Harvest International New Energy Co., Ltd. The security interest was codified in a share pledge agreement that Harvest International New Energy Co., Ltd. executed in favor of China Eximbank (as a “secured party”) on December 21, 2016 and in an amended share pledge agreement on September 12, 2018. On March 27, 2015, Harvest International New Energy purchased the entirety of Alter NRG's issued shares for CAD 5 per share, a 160% premium. After the acquisition, the operations of Alter NRG were funded by Harvest International New Energy Co., Ltd. and Sunshine Kaidi New Energy Group Co, Ltd. Then, in 2019, Sunshine Kaidi New Energy Group Co, Ltd. experienced financial difficulties that resulted in the company defaulting on its bonds. As a result, in or around January 2020, Alter NRG ceased operations and terminated its entire workforce before being forcefully taken over by MNP Ltd. and other creditors. During its operating lifespan, Alter NRG offered renewable energy services, electricity, natural gas, diesel, and ethanol to a global customer base.