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Overview

BOC Aviation provides a loan to Norwegian Air Shuttle for pre-delivery financing for aircraft

Commitment Year•2014Country of Activity•NorwayDirect Recipient Country of Incorporation•NorwayOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2014
Start (planned)
Jan 1, 2015
End (planned)
Jan 1, 2016
Last repayment (originally scheduled)
Jan 1, 2016

Geospatial footprint

Map overview

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This project provided a loan for pre-delivery financing for aircraft to Norwegian Air Shuttle AOC AS, which is headquartered at Oksenoyveien 3, Postboks 115, Lysaker, 1336. More detailed locational information can be found at: https://www.openstreetmap.org/way/150976400.

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 ownership

Funding agencies

State-owned companies

  • BOC Aviation Limited

Receiving agencies

Private Sector

  • Norwegian Air Shuttle ASA

Collateral providers

Private Sector

  • Norwegian Air Shuttle ASA

Loan description

BOC Aviation provides a loan to Norwegian Air Shuttle for pre-delivery financing for aircraft

Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•2 years

Collateral

This loan was secured by the purchase contracts with the aircraft manufacturers.

Narrative

Full Description

Project narrative

In 2014, BOC Aviation Limited — a Chinese state-owned aircraft leasing company and wholly-owned subsidiary of Bank of China (BOC) — entered into a U.S. dollar-denominated revolving credit facility (RCF) agreement with Norwegian Air Shuttle ASA — a Norwegian low-cost airline listed on the Oslo Stock Exchange — for the pre-delivery financing of aircraft with delivery in 2015 and 2016. The borrowings carried a maturity date at the delivery of each aircraft in 2016 (approximately two year-maturity period) and an interest rate of 3-month LIBOR plus a margin. This loan was secured by (i.e. collateralized against) the purchase contracts with the aircraft manufacturers.

Staff comments

1. Norwegian Air Shuttle ASA is a Norwegian low-cost airline listed on the Oslo Stock Exchange. In 2020, after financial problems, BOC Aviation Limited became a major shareholder at 12.7%.