Narrative
Full Description
Project narrative
On December 15, 2014, financial close was reached on a deal in which a syndicate of two banks — the Industrial and Commercial Bank of China (ICBC) via Skysea Malta Capital and BNP Paribas S.A. — entered into a syndicated loan agreement with Norwegian Air Shuttle ASA — a Norwegian low-cost airline listed on the Oslo Stock Exchange — for the JOLCO financing of one Boeing 737-800 aircraft. This loan was unsecured, carried a fixed interest rate of 6.25%, and was repayable in demand.
Staff comments
1. A Japanese Operating Lease with Call Option financing (JOLCO) is a type of financing arrangement commonly used in the aviation and shipping industries. It involves a Japanese investor purchasing an asset, such as an aircraft or ship, and leasing it to an operator for a fixed period of time, typically ranging from 5 to 12 years. The lease payments cover the investor's costs, including the purchase price of the aircraft, interest payments, and fees. At the end of the lease term, the operator has the option to purchase the asset at a pre-agreed price, known as the "call option". The lenders typically lend to a special purpose vehicle (SPV) which then leases it to the operator. 2. 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%. 3. In aviation finance, financial close typically occurs on or around the delivery date of the final aircraft. As financial close occurred on December 15, 2014, the aircraft was almost certainly delivered on or around that date. Thus AidData has coded the actual_implementation_start_date and actual_implementation_completion_date fields as December 15, 2014 and marked the actual_implementation_start_date_estimated? and actual_implementation_completion_date fields as True.