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Overview

BOC Aviation loans $90 million for sale and leaseback agreement with TUI AG for two aircraft (Linked to Record ID#100344)

Commitments (Constant USD, 2023)$92,856,044
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
Oct 30, 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 $90 million for sale and leaseback agreement with TUI AG for two aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

On or shortly before October 30, 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 two new Boeing 737 MAX-8 aircraft for the aggregate sum of $90 million. The lease agreement reflected standard commercial terms, and created an expected total lifetime lease obligation of around EUR 88 million, beginning by the end of the 2021 financial year. The aircraft were expected to arrive during winter 2020/21, pending the recertification of the Boeing 737 MAX-8. 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. This agreement followed an earlier, larger sale-and-leaseback agreement from BOC Aviation in July 2020 (see Record ID#100344). As of July 5, 2021, all five aircraft from the previous agreement and the two additional aircraft from this agreement had been delivered to TUI.