Overview

China Construction Bank provides syndicated loan to Qantas Airways

Commitment Year•2003Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: May 1, 2003

Last repayment (originally scheduled): Apr 28, 2015

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

China Construction Bank Corporation (CCB)

Receiving agencies

Private Sector

Qantas Airways Limited

Loan description

China Construction Bank leads USD 250 million syndicated loan to Qantas Airways for the purchase of two Boeing 747-100s in Australia 2003

Interest type•Variable Interest RateMaturity•12 years

Narrative

Full Description

Project narrative

In May 2003, Australian airliner Qantas Airways Limited mandated China Construction Bank Corporation (CCB) to arrange a $250 million USD loan to Qantas to fund 80% of the cost of the purchase of two $156 million USD Boeing 747-100s. CCB served as the sole mandated lead arranger. By August 2003, the loan was in general syndication, which would be a USD $253.5 million loan, with 12 year maturity, for the purchase of two Boeing 747-400ER aircraft. Arrangers contributing $30 million USD had fees of 85 basis points (bps) with front-end feeds of 50 bps and 35 bps for lead managers committing $10 million USD to $29 million USD. Responses were due by the end of August 2003. It is unclear whether this loan reached financial close, but as CCB served as mandated lead arranger, it committed to providing funds.