Overview

Bank of China (Luxembourg) provides a $45 million USD loan under a $155 million USD credit line to Cargolux Airlines International for unspecified purposes (Linked to Record ID#103297)

Commitments (Constant USD, 2023)$45,283,333

Commitment Year•2018Country of Activity•LuxembourgDirect Recipient Country of Incorporation•LuxembourgOverseas Jurisdiction•LuxembourgSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Sep 11, 2018

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

The project was a memorandum of understanding (MOU) with Cargolux Airlines International S.A., a Luxembourg-based international air cargo company headquartered at 70 Rue de Luxembourg, 5230 Sandweiler, Luxembourg. More detailed locational information can be found at: https://www.openstreetmap.org/relation/10521355

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% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

Bank of China (Europe) S.A. (formerly Bank of China (Luxembourg) S.A. or BOC Luxembourg)

Receiving agencies

Joint Venture/Special Purpose Vehicles

Cargolux Airlines International S.A.

Loan desecription

Bank of China (Luxembourg) provides a $45 million USD loan under a $155 million USD credit line to Cargolux Airlines International for unspecified purposes

Interest type•Unknown

Narrative

Full Description

Project narrative

On September 11, 2018, the Bank of China (Luxembourg) S.A. BOC (Luxembourg) signed a memorandum of understanding (MoU) for a $155 million USD global credit line loan agreement with Cargolux Airlines International S.A. — a Luxembourg-incorporated and based all-cargo airline and air freighter jointly owned by HNCA (Luxembourg) S.à.r.l., a Luxembourg-incorporated subsidiary of Henan Civil Aviation Development Investment Co., Ltd. (HNCA), a Chinese state-owned aviation investment company under the Government of Henan Province (35.00% equity stake), Luxembourg state-owned airline Luxair S.A. (35.10% stake), Luxembourg state-owned bank Banque et Caisse d'Épargne de l'Etat (10.91% stake), Luxembourg state-owned bank Société Nationale de Crédit et d'Investissement (SNCI) (10.67% stake) and the State of Luxembourg (8.32% stake) — for unspecified purposes. The MoU envisioned cooperation in the form of mid-term credit facilities, bonds (Schuldschein), financial market products, and aircraft finance. The MoU was seen as important in developing the 'Air Silk Road'. Record ID#103297 captures the overall MoU. Immediately, BOC issued a $45 million USD loan as a tranche under the $155 million USD loan. Record ID#103298 captures this tranche.

Staff comments

1. In 2014, HNCA acquired a 35% stake in Cargolux for $120 million USD using a Bank of China (BOC) loan, as captured by Record ID#103263.