The successful closure of the first Chinese aircraft financing
to be supported by Export-Import Bank of the United States of
America (Ex-Im Bank) without a guarantee from a Chinese bank or
a sovereign undertaking from the Chinese government, and
involving a dollar-guaranteed bond issuance, is expected to
prompt copycat transactions.
Air China’s purchase of a new Boeing 777-300ER
aircraft in October 2011 was financed by Ex-Im Bank, through a
November 2 issuance of a dollar-guaranteed bond by a Delaware
trust entity. The landmark transaction marked an end to Ex-Im
Bank’s decade-long absence from the Chinese
Harvey Lau of Baker & McKenzie, which acted as lead
counsel on the deal, told IFLR the transaction...