Overview

Bank of China provides a loan to Korean Air for debt refinancing purposes

Commitment Year•2017Country 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: Jan 13, 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

Bank of China (BOC)

Receiving agencies

Private Sector

Korean Air Lines Co., Ltd. (KAL)

Collateral providers

Private Sector

Korean Air Lines Co., Ltd. (KAL)

Loan description

Bank of China provides a loan to Korean Air for debt refinancing purposes

Interest type•Unknown

Collateral

The loan was secured by one Boeing 777-300ER aircraft.

Narrative

Full Description

Project narrative

On January 13, 2017, financial close was reached on a deal in which the Bank of China (BOC) entered into a commercial 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 debt refinancing purposes The loan was secured by (i.e. collateralized against) by one Boeing 777-300ER aircraft. The proceeds were to be used to the borrower to refinance debt.