China Development Bank provides $309 million loan for acquisition of three Boeing 787-8 aircraft for Uzbekistan Airways

In August 2019, China Development Bank and the National Bank for Foreign Economic Affairs of the Republic of Uzbekistan (NBU) signed a $309 million loan agreement to facilitate the acquisition of three Boeing 787-8 aircraft (‘Dreamliners’) for Uzbekistan Airways. The loan carried the following borrowing terms: a 10-year maturity, a 3-year grace period, an interest rate of 6-month LIBOR plus a 3.1% margin, and a 0.3% management fee. It was secured by (i.e. collateralized against) a mortgage on the three aircraft. The borrower on-lent the proceeds of the loan to Uzbekistan Airways. According to NBU, the loan had achieved a disbursement rate of at least 65.4% by the end of calendar year 2020 ($202,193,933 out of $309,000,000). There is also some evidence that suggest at least one of the Boeing 787-8 aircraft was successfully delivered to Uzbekistan Airways.

Additional details

1. The all-interest rate was calculated by adding 3.1% to the average 6-month LIBOR rate in August 2019 (2.057%). 2. This CDB loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.

Number of official sources

5

Number of total sources

21