THE Bank of China, Luxembourg's finance ministry and Luxembourg-based all-cargo carrier Cargolux are setting up a US$155 million global line of credit
THE Bank of China, Luxembourg's finance ministry and Luxembourg-based all-cargo carrier Cargolux are setting up a US$155 million global line of credit. According to the memorandum of understanding the trio signed in Beijing, $45 million will be made available immediately.
The partners plan to cooperate on mid-term credit facilities, bonds, financial market products and aircraft financings, reported London's Air Cargo News.
Bank of China Luxembourg chairman Zhou Lihong was quoted as saying: 'We are happy to strengthen our cooperation with Cargolux through this strategic partnership which is a significant step in our support for the 'Silk Road in the air'.'
Since 2014, China's Henan Civil Aviation Development (HNCA) owns a 35 per cent stake in Cargolux, which operates a fleet of 14 Boeing 747-8 and 14 Boeing 747-400 freighters.
Commenting on the financial agreement, HNCA deputy general manager Shengbo Yuan said: 'There is a long standing and trustworthy relationship between Cargolux and the Chinese institutions, one that we are happy to keep building on. Agreements such as this one reflect our mutual understanding and plant the seed for many more successful endeavours.'
