Jurisdiction - China
China – Baker & McKenzie Advises Air China on China’s First Aircraft Financing backed by Ex-Im Bank USD Guaranteed Bond.

2 November, 2011



Baker & McKenzie recently acted as Air China’s lead counsel on its purchase of a new Boeing 777-300ER aircraft which was financed by Export-Import Bank of the United States of America (“Ex-Im Bank”) through the issuance of a USD guaranteed bond by a Delaware trust entity. The transaction is a milestone in China’s aircraft financing history, as it marked the first transaction where a Chinese airline was able to finance an aircraft supported by Ex-Im Bank without the guarantee from a Chinese bank or a sovereign undertaking from the Chinese government, which involved the issuance of a USD guaranteed bond.
The multi-jurisdictional Baker & McKenzie team was led by Shanghai-based Banking & Finance partner Harvey Lau, Hong Kong-based US Securities partner Brian Spires, and from Chicago by Banking & Finance partner Creighton Meland, with the assistance from a team of banking & finance, US securities and tax lawyers based in Shanghai, Hong Kong and Chicago.
Commenting on the successful completion of the transaction, Harvey Lau said, “We are delighted to have assisted our long-standing client, Air China, on successfully concluding this strategic important transaction, which not only paves the way for Air China to further expand its air service, but also sets a strong precedent for future financing cooperation with Ex-Im Bank and opportunities for other airlines in China.“
BNP Paribas acted as the sole bookrunner and structuring agent for this transaction. 
Earlier this year, Baker & McKenzie also acted as Air China’s lead counsel on the purchase of its first two new Boeing 777-300ER aircraft, which were also financed by Ex-Im Bank.
For further information, please contact:
Jamie Kar, Baker McKenzie

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