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Overview

Bank of China provides a loan to Korean Air for the purchase of one Boeing 737-900ER aircraft

Commitment Year•2013Country 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
Jun 10, 2013
Last repayment (originally scheduled)
Jun 8, 2023

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

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • Korean Air Lines Co., Ltd. (KAL)

Implementing agencies

Private Sector

  • The Boeing Company (TBC)

Collateral providers

Private Sector

  • Korean Air Lines Co., Ltd. (KAL)

Loan description

Bank of China provides a loan to Korean Air for the purchase of one Boeing 737-900ER aircraft

Interest type•UnknownMaturity•10 years

Collateral

The loan was secured by the Boeing 737-900ER aircraft in question.

Narrative

Full Description

Project narrative

On June 10, 2013, financial close was reached on a deal in which the Bank of China (BOC) entered into a 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 — for the purchase of one Boeing 737-900ER aircraft. The loan carried a maturity period of 10 years and was secured by (i.e. collateralized against) the Boeing 737-900ER aircraft in question. The proceeds were to be used to the borrower to purchase the aircraft.