Air China closes Ex-Im financing on 777-300ER

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Air China has closed financing on the last of four Boeing 777-300ER aircraft under an US Export-Import (Ex-Im) financing facility guaranteed by HSBC and the Bank of Tokyo-Mitsubishi UFJ.

The GE90-115B powered aircraft, MSN 38671, delivered on 31 July. HSBC arranged the US Ex-Im financing structure.

It follows one 777-300ER, MSN 38675, delivered in February which was closed Bank of Tokyo-Mitsubishi UFJ. Both banks jointly closed the second aircraft, MSN 38669, in April.

The third aircraft MSN 38670, was delivered in May by Boeing to Air China and immediately placed into the carrier's balance sheet. HSBC later refinanced the aircraft under $134.5 million US Ex-Im guaranteed bonds transaction on behalf of Air China. The wrapped bonds, which have a coupon of 1.972%, were priced at par, or around 75 basis points over swaps. The term is almost 12 years.

Air China has two additional 777-300ER deliveries in August and October this year. Another six are planned for 2013 while the remaining two are scheduled for 2014.