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Overview

China Construction Bank contributes to AED 1.46 billion lease financing facility with Etihad Airways to fund the acquisition of four Airbus A340-500 aircraft

Commitments (Constant USD, 2023)$110,092,827
Commitment Year•2007Country of Activity•United Arab EmiratesDirect Recipient Country of Incorporation•United Arab EmiratesOverseas Jurisdiction•Hong Kong (China)Sector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 2, 2007
Start (actual)
Dec 31, 2006
End (actual)
Dec 31, 2006

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)

Cofinancing agencies

Joint Venture/Special Purpose Vehicles

  • Arab African International Bank (AAIB)

Private Sector

  • Standard Chartered Bank PLC

State-owned Banks

  • ABC Islamic Bank
  • First Abu Dhabi Bank PJSC (FAB)
  • Qatar National Bank Q.P.S.C. (QNB)

Receiving agencies

State-owned companies

  • Etihad Airways

Loan description

2007 syndicated AED 1.46 billion lease financing facility from CCB and others to Etihad Airways to fund the acquisition of four Airbus A340-500 aircraft in the UAE

Interest type•Unknown

Narrative

Full Description

Project narrative

On May 1, 2007, China Construction Bank (CCB), through its Hong Kong branch, contributed an AED 1.46 billion Islamic lease financing facility to Etihad Airways to finance the airline's acquisition of four Airbus A340-500 aircraft, which were delivered in 2006. Other details about the facility are currently unknown. Six (6) institutions participated in the lending syndicate. ABC Islamic Bank, First Abu Dhabi Bank (FAB), Qatar National Bank (QNB), and Standard Chartered Bank acted as mandated lead arrangers (MLAs). Arab African International Bank (AAIB) and China Construction Bank (CCB) acted as arrangers. Citigroup and Abu Dhabi Commercial Bank (ADCB) acted as mandated lead arrangers (MLAs) and joint bookrunners but did not participate as financiers.

Staff comments

1. For the time being, AidData is estimating China Construction Bank's (CCB) contribution (AED 233.33 million) by dividing the total syndicated tranche amount (AED 1.46 billion) by the known number of participants (6). 2. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products.