Air China repeats Ex-Im bond financing for 777-300ER

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Air China has issued another US Export-Import Bank-guaranteed bond to finance a new Boeing 777-300ER (MSN 38674).

The $140.7 million bond carries a coupon of 1.605%.

Citibank is the sole arranger and sole bookrunner of the 12-year bond, which priced at mid-swaps, plus 52 basis points.

The aircraft is part of a joint mandate with BNP Paribas. Under the terms of the mandate, BNP Paribas financed the first aircraft in September while Citibank financed the second aircraft.

In June Air China placed $134.5 million in Ex-Im guaranteed bonds for the financing of another 777-300ER through sole arranger and bookrunner HSBC. The wrapped bonds, which had a coupon of 1.972%, were priced at par, or around 75 basis points over swaps. The term is 12 years.

Last November, Air China tapped the capital markets through leasing entity Purple Chen 2011. It mandated BNP Paribas to arrange a $135 million Ex-Im guaranteed bond. The French bank was the sole arranger and bookrunner of the bond. The transaction priced at 2.735%.