Active Development AidData Chinese Aid

[Canceled] ICBC provides $104.8 million loan for acquisition of one Boeing 787-8 aircraft (Linked to Record ID#72173)

$104.8M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU)
Country	Uzbekistan
Start Date	Mar 01, 2018
End Date	Aug 16, 2027
Duration	3,455 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`54522`

Grant Description

[Canceled] ICBC provides $104.8 million loan for acquisition of one Boeing 787-8 aircraft On March 1st, 2018, the Industrial and Commercial Bank of China (ICBC) and the National Bank for Foreign Economic Affairs of the Republic of Uzbekistan (NBU) (CDB) signed a $104.8 million loan agreement to finance the acquisition of one Boeing 787-8 aircraft.

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 10-year maturity

📅 Maturity10 years

⏳ Grace Period3 years

The National Bank for Foreign Economic Affairs of the Republic of Uzbekistan reportedly on-lent the proceeds of the ICBC loan to Uzbekistan Airways.

The proceeds of the ICBC loan were to be used by the borrower to partially finance a commercial contract that Uzbekistan Airways signed with Boeing (USA) for the acquisition of four new Boeing 787-8 aircraft between 2018 and 2020 (including three Boeing 787-8 aircraft for delivery in 2019-2020).

The proceeds of the ICBC loan were to be used to finance one of the four aircraft, which Uzbekistan Airways also pledged as a source of collateral (that the lender could seize in the event of default).

The other three Boeing 787-8 aircraft were supposed to be financed with a $100.41 million loan from the Fund for Reconstruction and Development of Uzbekistan (FRDU) and two loans worth $212.65 million (one worth $105.53 million in 2019 and another worth $107.12 million in 2020) from China Development Bank.

Each of these loans was earmarked for the acquisition of a single Boeing 787-8 aircraft. However, the ICBC loan was subsequently canceled for unknown reasons.

📋 Staff Comments

For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
The Russian project title is Приобретение четырех новых самолетов 'Боинг-787-8”.
Project ID#72173 captures the $107.12 million CDB loan. It is unclear whether the $105.53 million ever materialized.
The ICBC loan is not included in the Government of Uzbekistan’s public debt register (https://www.dropbox.com/s/68zuiadtulh2thm/Uzbekistan%202020%20State%20Debt%20Report.pdf?dl=0), which likely reflects the fact that it was canceled.

📚 Sources & References

Projects implemented at the expense of loans guaranteed by the state and at the expense of FRDU, Давлат кафолати остидаги кредитлар ва ЎТТЖ ҳисобидан амалга оширилаётган лойиҳалар, НАК «Узбекистон хаво йуллари» расширит парк самолётов, АДРЕСНАЯ ПРОГРАММА инвестиционных проектов на 2019 год, реализуемых с привлечением иностранных кредитов под государственную гарантию Республики Узбекистан, НАК приобретет еще три новых «Дримлайнера», НАК приобретет еще три новых «Дримлайнера», ПОСТАНОВЛЕНИЕ ПРЕЗИДЕНТА РЕСПУБЛИКИ УЗБЕКИСТАН О МЕРАХ ПО ПРИОБРЕТЕНИЮ ТРЕХ НОВЫХ САМОЛЕТОВ «БОИНГ-787-8» ДЛЯ НАК «УЗБЕКИСТОН ХАВО ЙУЛЛАРИ», “O‘ZBEKISTON HAVO YO‘LLARI” MAK UCHUN UCHTA YANGI “BOING-787-8” SAMOLYOTINI XARID QILISH CHORA-TADBIRLARI TO‘G‘RISIDA
The state debt of the Republic of Uzbekistan Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.