ICBC contributes to $970.29 million syndicated sale-and-leaseback agreement with Air India for nine Dreamliner aircraft

In August 2016, a syndicate of four banks — the Industrial and Commercial Bank of China, the Bank of India, the Export-Import Bank of India, and Deutsche Bank — entered into a $970.29 million syndicated sale-and-leaseback agreement with Air India Limited (India's flag carrier airline and a state-owned company) to provide it with aircraft financing. This loan carried a maturity of 10 years. Deutsche Bank contributed $42 million to the loan syndicate as a lead bank; ICBC, BOI, and Indian Eximbank contributed the remaining $928.29 million. It involved nine Boeing 787 Dreamliner aircraft. The Government of India issued a guarantee for this deal.

Additional details

1. While it is known Deutsche Bank contributed $42 million USD, the individual contribution of the other three lenders to the remaining $928.29 million USD of this syndicated loan is unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that each lender contributed an equal amount ($309,430,000 USD) to the remaining $928.29 million USD amount. 2. Air India Limited was privatized in 2022. 3. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products.

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