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Overview

Bank of China provides a $37.5 million USD loan on June 20, 2016 to the Dart Group for the acquisition of one Boeing 737-800NG aircraft

Commitments (Constant USD, 2023)$40,902,059
Commitment Year2016Country of ActivityUnited KingdomDirect Recipient Country of IncorporationUnited KingdomOverseas JurisdictionUnited KingdomSectorTransport And StorageFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 20, 2016

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 $37.5 million USD loan on June 20, 2016 to the Dart Group for the acquisition of one Boeing 737-800NG aircraft

Interest typeUnknown

Collateral

This loan was secured by a first priority aircraft mortgage, on one Boeing 737-800NG aircraft, except engines, bearing manufacturer's serial number 63144 and Registration Mark G-JZHJ, and CFM56-7B24E CFM International S.A. engines with manufacturer's serial numbers 864507 and 864509, as charged by Dart Group and outlined in a charge dated September 20, 2016, the rights, title, and interest in an engine warranties agreement to two CFM56-7B24E engines with serial numbers 864507 and 864509, in favor of BOC as charged by Dart Group and outlined in a charge dated September 20, 2016, its 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 September 20, 2016, an assignment of the aircraft lease agreement for said aircraft, as charged by Dart Group and outlined in a charge dated September 20, 2016, and an assignment of insurances on said aircraft, in favor of BOC as charged by Jet2.com Limited and outlined in a charge dated September 20, 2016. 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 June 20, 2016, the London Branch of the Bank of China (BOC) entered into $37,500,000 USD loan agreement with Dart Group plc — a British airline — for the acquisition of one Boeing 737-800NG aircraft. The loan had an option to convert to its face value to GBP. 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 63144 and Registration Mark G-JZHJ, and CFM56-7B24E CFM International S.A. engines with manufacturer's serial numbers 864507 and 864509, as charged by Dart Group and outlined in a charge dated September 20, 2016, the rights, title, and interest in an engine warranties agreement to two CFM56-7B24E engines with serial numbers 864507 and 864509, in favor of BOC as charged by Dart Group and outlined in a charge dated September 20, 2016, its 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 September 20, 2016, an assignment of the aircraft lease agreement for said aircraft, as charged by Dart Group and outlined in a charge dated September 20, 2016, and an assignment of insurances on said aircraft, in favor of BOC as charged by Jet2.com Limited and outlined in a charge dated September 20, 2016. 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 September 12, 2016. BOC served as sole lender, agent, and security trustee. The deal closed in September 2016. 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.