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Overview

Bank of China provides a $37.5 million USD loan on June 22, 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 22, 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 22, 2016 to the Dart Group for the acquisition of one Boeing 737-800NG aircraft

Interest typeUnknown

Collateral

a first priority aircraft mortgage on one Boeing 737-800NG aircraft, except engines, bearing manufacturer's serial number 63568 and Registration Mark G-JZHL, and CFM56-7B24E model engines, as charged by Dart Group and outlined in a charge dated November 11, 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 November 11, 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 November 11, 2016, an assignment of the aircraft lease agreement for said aircraft, as charged by Dart Group and outlined in a charge dated November 11, 2016, an assignment of insurances on said aircraft, excluding the model engines, in favor of BOC as charged by Jet2.com Limited and outlined in a charge dated November 11, 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 22, 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 63568 and Registration Mark G-JZHL, and CFM56-7B24E model engines, as charged by Dart Group and outlined in a charge dated November 11, 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 November 11, 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 November 11, 2016, an assignment of the aircraft lease agreement for said aircraft, as charged by Dart Group and outlined in a charge dated November 11, 2016, an assignment of insurances on said aircraft, excluding the model engines, in favor of BOC as charged by Jet2.com Limited and outlined in a charge dated November 11, 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 October 28, 2016. BOC served as sole lender, agent, and security trustee. The deal closed in November 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.