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Overview

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

Commitments (Constant USD, 2023)$320,738,135
Commitment Year•2019Country of Activity•UzbekistanDirect Recipient Country of Incorporation•UzbekistanSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2019
End (actual)
May 15, 2020
First repayment
Jul 31, 2022
Last repayment
Jul 29, 2029

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of this project was to provide loan to Uzbekistan Airways for the purchase of new aircraft. More detailed location information for Uzbekistan Airways Head Office can be found at: https://www.openstreetmap.org/way/91875452

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 Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned Banks

  • National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU)

State-owned companies

  • Uzbekistan Airways JSC

Collateral providers

State-owned companies

  • Uzbekistan Airways

Loan desecription

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

Grace period•3 yearsGrant element•20.4584%Interest rate (t₀)•5.32688%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•10 years

Collateral

The loan was collateralized against a mortgage on three Boeing 787-8 aircraft (‘Dreamliners’) owned by Uzbekistan Airways.

Narrative

Full Description

Project narrative

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.

Staff comments

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.