Overview

China Eximbank provides a $450 million USD loan to Minsheng Financial Leasing for the purchase of two Airbus A380-800 aircraft to lease to Asiana Airlines

Commitments (Constant USD, 2023)$478,856,871

Commitment Year•2017Country of Activity•KoreaDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 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% Chinese ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

Private Sector

Asiana Airlines, Inc.
Minsheng Financial Leasing Co., Ltd. (MSFL)

Loan description

China Eximbank provides a $450 million USD loan to Minsheng Financial Leasing for the purchase of two Airbus A380-800 aircraft to lease to Asiana Airlines

Interest type•Unknown

Collateral

The loan was secured with a cross-collateralized structure and a set of finance and security documentation under the laws of England, China, Ireland, and South Korea.

Narrative

Full Description

Project narrative

In 2017, the Export-Import Bank of China entered into a $450 million USD loan agreement with Minsheng Financial Leasing Co., Ltd. (MSFL) — a Chinese leasing company based in Beijing majority-owned by Chinese private sector bank China Minsheng Banking Corp., Ltd. (CMBC) — to finance the purchase of two Airbus A380-800 aircraft to be placed on finance lease with South Korean airliner Asiana Airlines, Inc. The loan was secured (i.e. collateralized) with a cross-collateralized structure and a set of finance and security documentation under the laws of England, China, Ireland, and South Korea. The loan was the first major China Eximbank-backed financing for aircraft leased to an Asia-Pacific based international airline and its first financing of an A380 aircraft.

Staff comments

1. It is plausible a subsidiary of Minsheng Financial Leasing was the exact borrower. This issue merits further investigation.