Overview

ICBC provides EUR 110 million loan to Turkish Airlines for Boeing B777 freighter aircraft

Commitments (Constant USD, 2023)$127,876,499

Commitment Year•2019Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2019

Last repayment (originally scheduled): Dec 29, 2028

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 Commercial Banks

Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

Crédit Agricole Corporate and Investment Bank (CACIB) (Crédit Agricole CIB) (Formerly Calyon) (Formerly Crédit Agricole Indosuez (CAI))

Receiving agencies

Private Sector

Turkish Airlines

Loan description

ICBC provides EUR 110 million loan to Turkish Airlines for Boeing B777 freighter aircraft

Interest type•UnknownMaturity•10 years

Narrative

Full Description

Project narrative

In 2019, the Industrial and Commercial Bank of China (ICBC) issued an EUR 110 million, 10-year commercial loan to Turkish Airlines for a Boeing B777 freighter aircraft. The loan was part of a larger transaction that involved a French lease financing arrangement with Crédit Agricole CIB.

Staff comments

1. Turkish Airlines is the national flag carrier airline of Turkey. Currently, the Republic of Turkey's Prime Ministry Privatization Administration owns a 49.12% interest in THY, while 50.88% of shares are publicly traded. Turkish Airlines started its journey in 1933 with 5 airplanes. 2. Some sources identify ICBC Aviation Leasing Company Limited as the lender rather than ICBC. This issue warrants further investigation. 3. Norton Rose Fulbright advised on the transaction.