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Overview

China Eximbank provides $200 million bilateral loan to AVIC for its acquisition of Continental Motors

Commitments (Constant USD, 2023)$227,299,430
Commitment Year•2011Country of Activity•United StatesDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2011
Start (actual)
Apr 1, 2011
End (actual)
Apr 1, 2011
Last repayment (originally scheduled)
Dec 28, 2025

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% Chinese ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

  • Aviation Industry Corporation of China, Ltd. (AVIC)

Guarantors

State-owned companies

  • AVIC International Holding Corporation

Loan description

China Eximbank provides $200 million bilateral loan to AVIC for its acquisition of Continental Motors

Interest type•UnknownMaturity•15 years

Narrative

Full Description

Project narrative

In 2011, the Export-Import Bank of China (China Eximbank) provided $200 million bilateral loan to Aviation Industry Corporation of China, Ltd. (AVIC) for acquisition of Continental Motors, a U.S. aviation manufacturing company. The loan carried a 15-year maturity and it was backed by a corporate guarantee from AVIC International Holding Corporation. In April 2011, AVIC acquired Continental Motors from Teledyne Technologies for a consideration of $186 million. Based in Alabama in the United States, Continental Motors was a leading manufacturer of the U.S. Federal Aviation Administration-certified piston engines, as well as spare parts and components, used in small propeller-driven general aviation aircraft. This was the first-ever acquisition by a PRC aviation company of a U.S. aviation manufacturing company.

Staff comments

1. China Eximbank was advised by Shepard Liu of the international law firm, Milbank. 2. Continental Monitors has built many engines for the US military.