Baker & McKenzie's securities team recently advised Air China Limited ("Air China"), as the lessor, and Sandalwood 2013 LLC, a special purpose trust incorporated in the state of Delaware, on the respective offerings of US$130 million 2.836% secured notes due 2025 and US$132 million 2.897% secured notes due 2025, both guaranteed by the Export-Import Bank of the United States ("US Ex-Im Bank"). The transaction featured a flip-to-capital markets option in which the proceeds from the offering will be used to re-finance a US Ex-Im loan for the leasing of two new Boeing 777-300ERs.

The Baker & McKenzie team was led by Shanghai-based partner Harvey Lau and Hong Kong-based securities partner Brian Spires.  They were supported by registered foreign lawyer Christopher Shen in Hong Kong, as well as consultant Ding Yi in Shanghai.

Citigroup and TD Securities (USA) were the joint bookrunners and structuring agents for the transaction.

Listed in Hong Kong (SEHK: 0753) and London (LSE: AIRC), Air China ranks among the leading domestic PRC airlines.  Air China is the exclusive national flag carrier for civil aviation in the People's Republic of China ("PRC") and is a member of the Star Alliance, the world’s largest airline alliance.

Baker & McKenzie has been involved in a number of recent US Ex-Im Bank supported aircraft securitization deals for major airlines. This includes acting as lead counsel for Air China on the very first transaction where a Chinese airline was able to finance an aircraft supported by US Ex-Im Bank without the guarantee from a Chinese bank or a sovereign undertaking from the Chinese government - marking a significant milestone in the PRC’s aircraft financing history, and which won recognition from China Business Law Journal as 'Banking & Finance Deal of the Year' (2011).