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Overview

ICBC contributes to a $60 million USD syndicated loan to Korean Air to support the purchase of aircraft

Commitments (Constant USD, 2023)$41,619,533
Commitment Year•2009Country of Activity•KoreaDirect Recipient Country of Incorporation•KoreaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 17, 2009
Last repayment (originally scheduled)
Sep 15, 2017

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

  • Natixis

Receiving agencies

Private Sector

  • Korean Air Lines Co., Ltd. (KAL)

Collateral providers

Private Sector

  • Korean Air Lines Co., Ltd. (KAL)

Loan description

ICBC contributes to a USD $60 million syndicated loan to Korean Air to support the purchase of aircraft in South Korea in 2009

Interest type•UnknownMaturity•8 years

Narrative

Full Description

Project narrative

Between September 11 and 17, 2009, a two-bank syndicate — the Industrial and Commercial Bank of China (ICBC) and Natixis as mandated lead arrangers — entered into a $60 million USD syndicated term loan agreement with Korean Air Lines Co., Ltd. (KAL) — the flag carrier airline of South Korea headquartered in Seoul and listed on the Korea Exchange — to support the purchase of aircraft. This term loan carried a maturity period of eight years and was secured (i.e. collateralized). The proceeds were to be used by the borrower to support the purchase of aircraft.

Staff comments

1. The exact signing date is unknown, it as it was listed in "Loan week, November 30-December 6", AidData assumes that the loan was signed between September 11 and 17, 2009, coding the latter date as the commitment date and marking the commitment_date_estimated? field as True. 2. The precise contributions of ICBC and Natixis to this $60 million USD loan are unknown. For the time being, AidData has assumed ICBC's contribution by assuming each lender contributed equally ($30,000,000 USD) to the loan syndicate.