Dentons’ Tashkent office has successfully advised China Development Bank on a US$309 million deal to finance Uzbekistan Airways’ acquisition of three Boeing 787-8 Dreamliners. China Development Bank made the facility available to the National Bank of Uzbekistan for Foreign Economic Activity, to on-lend to JSC Uzbekistan Airways towards the acquisition of three aircraft.

This is one of the first aircraft finance deals closed since Uzbekistan’s accession to the Cape Town Convention. Since its accession, Uzbekistan has shifted from an offshore (SPV) finance structure towards onshore finance with financial interests on aircraft assets being registered with the International Registry.

Partner Shukhrat Yunusov, Head of the Banking and Finance practice in Uzbekistan, and a dual qualified lawyer and junior associate Sanjar Narzullaev advised the lender, China Development Bank. The team advised on the financing, drafted the mortgage for the three aircraft, and advised on a sovereign guarantee.