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Overview

Bank of China provides a $35 million USD loan in February 2018 to the Dart Group for the acquisition of one Boeing 737-800NG aircraft

Commitments (Constant USD, 2023)$35,220,370
Commitment Year•2018Country of Activity•United KingdomDirect Recipient Country of Incorporation•United KingdomOverseas Jurisdiction•United KingdomSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 23, 2018
Start (actual)
Jan 1, 2018
End (actual)
Jan 1, 2018

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

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • Jet2 plc (formerly Dart Group plc)

Implementing agencies

Private Sector

  • The Boeing Company (TBC)

Collateral providers

Private Sector

  • Jet2 plc (formerly Dart Group plc)
  • Jet2.com Limited

Security / collateral agents

State-owned Commercial Banks

  • Bank of China (BOC)

Loan description

Bank of China provides a $35 million USD loan in February 2018 to the Dart Group for the acquisition of one Boeing 737-800NG aircraft

Interest type•Unknown

Collateral

This loan was secured by a first priority aircraft mortgage on one Boeing 737-800NG aircraft, except engines, bearing manufacturer's serial number 63163 and Registration Mark G-JZBH, and CFM56-7B24E model engines, as charged by Dart Group and outlined in a charge dated February 28, 2018, the rights, title, and interest in an engine warranties agreement to two CFM56-7B24E engines with serial numbers 038943 and 038944, in favor of BOC as charged by Dart Group and outlined in a charge dated February 28, 2018, the rights, title, and interest in the airframe warranties agreement for said aircraft, in favor of BOC as charged by Dart Group and outlined in a charge dated February 28, 2018, an assignment of the aircraft lease agreement for said aircraft, as charged by Dart Group and outlined in a charge dated February 28, 2018, and an assignment of insurances on said aircraft, except engines, in favor of BOC as charged by Jet2.com Limited and outlined in a charge dated February 28, 2018. On August 27, 2020, the parties amended the security arrangements; Dart Group pledged a second priority global aircraft mortgage and a second priority global assignment of the aircraft leases and Jet2.com Limited pledged a second priority global assignment of insurances relating to six Boeing 737-800NG aircraft with MSNs 63144, 63568, 63163, 63169, 64439, and 64440 to BOC for each respective loan agreement.

Narrative

Full Description

Project narrative

On February 23, 2018, the London Branch of the Bank of China (BOC) entered into the GBP-equivalent of a $35,000,000 USD loan agreement with Dart Group plc — a British airline — for the acquisition of one Boeing 737-800NG aircraft. This loan was secured by (i.e. collateralized against) a first priority aircraft mortgage on one Boeing 737-800NG aircraft, except engines, bearing manufacturer's serial number 63163 and Registration Mark G-JZBH, and CFM56-7B24E model engines, as charged by Dart Group and outlined in a charge dated February 28, 2018, the rights, title, and interest in an engine warranties agreement to two CFM56-7B24E engines with serial numbers 038943 and 038944, in favor of BOC as charged by Dart Group and outlined in a charge dated February 28, 2018, the rights, title, and interest in the airframe warranties agreement for said aircraft, in favor of BOC as charged by Dart Group and outlined in a charge dated February 28, 2018, an assignment of the aircraft lease agreement for said aircraft, as charged by Dart Group and outlined in a charge dated February 28, 2018, and an assignment of insurances on said aircraft, except engines, in favor of BOC as charged by Jet2.com Limited and outlined in a charge dated February 28, 2018. BOC served as security trustee for this loan. Dart Group signed a purchase agreement for the 737-800NG with The Boeing Company on September 2, 2015. Jet2.com Limited, a low-cost airline and subsidiary of Dart, entered into a lease agreement with Dart Group for use of the aircraft on January 31, 2018. The aircraft was acquired in January 2018. On August 27, 2020, the parties amended the security arrangements; Dart Group pledged a second priority global aircraft mortgage and a second priority global assignment of the aircraft leases and Jet2.com Limited pledged a second priority global assignment of insurances relating to six Boeing 737-800NG aircraft with MSNs 63144, 63568, 63163, 63169, 64439, and 64440 to BOC for each respective loan agreement.