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CHINA: Hainan Airlines Looking For US$1.8 bn In Bank Loans

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Title : CHINA: Hainan Airlines Looking For US$1.8 bn In Bank Loans
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CHINA: Hainan Airlines Looking For US$1.8 bn In Bank Loans

Hainan Airlines, a carrier affiliated with the conglomerate HNA Group, is planning to borrow 7.5 billion yuan (US$1.08 billion) from banks, according to a company statement.

The National Development Bank is the lead and agent bank, which will provide the company with 1.5 billion yuan.

Six other banks including, Exim Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of China and Postal Savings Bank of China will each offer the company 1 billion yuan.

The loan period is three years, while the grace period is one year.

Hainan Airlines said the funds will be used for operational expenses such as buying aviation fuel, aviation materials as well as maintenance and landing fees.

Last summer, Airbus refused delivery of a number of Airbus A330 aircraft to Hainan Airlines because the carrier was not able to pay for them. Parent company HNA is also in turmoil due to a shortage of capital and the sudden death of its chairman, who fell to his death in France.


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1 Response to "CHINA: Hainan Airlines Looking For US$1.8 bn In Bank Loans"

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