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Overview

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

Commitments (Constant USD, 2023)$337,501,976
Commitment Year•2016Country of Activity•IndiaDirect Recipient Country of Incorporation•IndiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2016
Last repayment (originally scheduled)
Jul 30, 2026

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

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Deutsche Bank AG

State-owned Banks

  • Bank of India Limited (BOI)
  • India Export Import Bank

Receiving agencies

State-owned companies

  • Air India Limited

Guarantors

Government Agencies

  • Government of India (GoI)

Loan description

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

Interest type•UnknownMaturity•10 years

Narrative

Full Description

Project narrative

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.

Staff comments

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.