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Overview

BOC Aviation loans $226 million for sale and leaseback agreement with TUI AG for five aircraft (Linked to Record ID#100345)

Commitments (Constant USD, 2023)$233,171,844
Commitment Year•2020Country of Activity•GermanyDirect Recipient Country of Incorporation•United KingdomOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 31, 2020
End (actual)
Jul 5, 2021

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned companies

  • BOC Aviation Limited

Receiving agencies

Private Sector

  • TUI Travel Aviation Finance Limited

Loan description

BOC Aviation loans $226 million for sale and leaseback agreement with TUI AG for five aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

On July 31, 2020, BOC Aviation signed a sale-and-leaseback agreement with TUI Travel Aviation Finance Limited -- a wholly owned subsidiary of German travel company TUI AG -- for five new Boeing 737 MAX-8 aircraft for the aggregate sum of $226 million. The lease agreement reflected standard commercial terms, and created an expected total lifetime lease obligation of around EUR 223 million, beginning by the end of the 2021 financial year. The first aircraft was expected to arrive in the first quarter of 2021, while the remaining four aircraft were expected to be delivered ahead of the summer 2021 season. The agreement would support TUI AG's planned asset-right strategy and re-fleeting program, and occurred amidst financial distress due to travel restrictions resulting from COVID-19. At the time of signing, TUI said they expected further financing from BOC Aviation soon (see Record ID#100345). As of July 5, 2021, all five aircraft from this agreement and two additional aircraft from a future agreement had been delivered to TUI.