Narrative
Full Description
Project narrative
From January 1 2012 to April 14, 2017, CATIC International Finance Limited entered into several small loan loan agreements (in total $48.2 million USD) with Technify Motor (USA) Inc. — a Delaware-incorporated limited liability company engaged in aircraft engine manufacturing, and a wholly owned subsidiary of Motto Investment Limited (BVI), itself owned by AVIC International Holding Corporation. The loans' maturities vary and the interest rates also vary (0% to 5.88% per year). The proceeds were used by the borrower for an unspecified purpose — the use of proceeds is unknown.
Staff comments
1. The loan contract is not available. 2. Technify Motor (USA) Inc. is a U.S.-incorporated aerospace engine manufacturer and a subsidiary of AVIC International Holding Corporation, a Chinese state-owned enterprise focused on international business operations in aviation and other high-tech sectors. 3. In July 2013, AVIC International Holding Corporation subsidiary Technify Motors GmbH acquired German-based Thielert Aircraft. Thielert’s 1.7L engine powered the MQ-10C Gray Eagle UAV, a derivative of the General Atomics Predator drone used by the U.S. Air Force (a defense article that is export controlled by the International Traffic in Arms Regulations, ITAR). This engine also has been used in the military versions of the Diamond Aircraft DA42,604 a largely composite twin-engine aircraft used for both manned and unmanned surveillance. Technify Motors GmbH key customers are: manufacturers of new piston engine-powered aircraft; fleets and owner/operators of existing aircraft that would convert from gasoline-fueled engines to diesel-fueled engines; owner/operators requiring maintenance and spare parts for their diesel-fueled aircraft engines; and developers/manufacturers/users of UAVs. 4. The loan's commitment date is coded as January 1, 2012; however, there are several loans of which maturity range from 2012 to April 2017.