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Overview

China Construction Bank contributes to a $700 million USD syndicated loan to AerCap to finance the acquisition of a portfolio of nine aircraft

Commitments (Constant USD, 2023)$109,072,157
Commitment Year•2016Country of Activity•NetherlandsDirect Recipient Country of Incorporation•NetherlandsOverseas Jurisdiction•LuxembourgSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 7, 2016
End (planned)
Dec 31, 2016
Last repayment (originally scheduled)
Dec 5, 2022

Geospatial footprint

Map overview

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This project was a loan agreement for the purchase of nine aircraft to AerCap Holdings, headquartered at 65 St Stephen's Green, Saint Kevin's, Dublin, Ireland. More detailed locational information can be found at: https://www.openstreetmap.org/way/269819558

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • China Construction Bank (Europe) S.A. (CCB Europe)

Cofinancing agencies

Private Sector

  • Bank of East Asia Limited (BEA)
  • CTBC Bank (formerly Chinatrust Commercial Bank)
  • DBS Bank Ltd.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • National Australia Bank Limited (NAB)
  • The Tokyo Star Bank, Ltd.

State-owned Banks

  • Development Bank of Japan Inc. (DBJ)

Receiving agencies

Private Sector

  • AerCap Holdings N.V.

Implementing agencies

Private Sector

  • Airbus SE (formerly European Aeronautic Defence and Space Company N.V., Airbus Group NV, and Airbus Group SE)
  • The Boeing Company (TBC)

Loan desecription

China Construction Bank contributes to a $700 million USD syndicated loan to AerCap to finance the acquisition of a portfolio of nine aircraft

Interest type•UnknownMaturity•6.667 years

Narrative

Full Description

Project narrative

On April 7, 2016, financial close was reached on a deal in which a syndicate of seven banks — including China Construction Bank (Europe) S.A. (CCB Europe) — entered into a $700 million USD credit facility agreement with AerCap Holdings N.V. — a Netherlands-incorporated and Dublin, Ireland-headquartered global aircraft and engine leasing, trading, and parts sales, aircraft management, and aircraft maintenance and repair company listed on the New York Stock Exchange — to finance the acquisition of a portfolio of nine aircraft. This loan carried a maturity period of approximately 6.66 years and a final maturity date in December 2022. This loan was secured. The proceeds were to be used by the borrower to finance the acquisition of a portfolio of nine narrowbody and widebody aircraft on order from Boeing and Airbus through the end of 2016. In addition to CCB, the following lenders contributed to the loan syndicate: CTBC Bank Co. Ltd., Development Bank of Japan (DBJ), DBS Bank Ltd., the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), the National Australia Bank Limited (NAB), Bank of East Asia (BEA) and The Tokyo Star Bank. CTBC Bank, DBJ, and DBS served as coordinators. CTBC Bank, DBJ, DBS, BTMU, NAB, CCB, BEA, and Tokyo Star acted as mandated lead arrangers.

Staff comments

1. The individual contributions of the seven known lenders to this $700 million USD syndicated loan are unknown. For the time being, AidData has estimated CCB's contribution by assuming that each lender contributed equally ($100,000,000 USD) to the loan syndicate. 2. In 2015, AerCap Holdings moved its headquarters to Ireland, but remained incorporated in the Netherlands. 3. "Clifford Chance advises on US$650 million secured credit facility for AerCap", a late April 2016 press release from Clifford Chance, which advised on this deal, stated that the loan had a value of up to $650 million USD. However, AerCap's press release "AerCap Announces Closing of $0.7 Billion New Credit Facility" released earlier in April 2016 and various filings to regulators and reports state the loan had a value of $0.7 billion USD ($700 million USD). The cause of this discrepancy is unknown. This issue merits further investigation.