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Overview

CMB Financial Leasing leases one Airbus A320neo aircraft to Flynas in 2021

Commitment Year•2021Country of Activity•Saudi ArabiaDirect Recipient Country of Incorporation•Saudi ArabiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 28, 2021
Start (actual)
Feb 1, 2020
End (actual)
Feb 1, 2020

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

  • CMB Financial Leasing Co., Ltd. (CMB Financial Leasing) (CMBF) (CMBFL)

Receiving agencies

Private Sector

  • flynas Company LCC

Loan description

CMB Financial Leasing leases one Airbus A320neo aircraft to Flynas in 2021

Interest type•Unknown

Narrative

Full Description

Project narrative

On January 28, 2021, financial close was reached on a deal in which CMB Financial Leasing Co., Ltd. (CMBFL) — a Chinese state-owned leasing company — entered into an operating lease agreement with flynas Company LCC — a private Saudi low-cost airline headquartered in Riyadh — for one Airbus A320neo aircraft. The specific aircraft was a narrowbody Airbus A320neo. The aircraft was delivered to flynas in early February 2020.

Staff comments

1. A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments. Under a capital lease (a financial arrangement where the lessee/borrower uses an asset and pays regular installments plus interest to the lender/lessor), rental payments are usually classified as interest and obligation payments, similarly to a mortgage (with the interest calculated each rental period on the outstanding obligation balance). AidData codes capital leases as loans.