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Overview

BOC Aviation leases one Airbus A320neo aircraft to Flynas in March 2021

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

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 15, 2021
Start (actual)
Mar 15, 2021
End (actual)
Mar 15, 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

  • flynas Company LCC

Loan description

BOC Aviation leases one Airbus A320neo aircraft to Flynas in March 2021

Interest type•Unknown

Narrative

Full Description

Project narrative

On or around March 15, 2021, BOC Aviation Limited — a Chinese state-owned leasing company — delivered one Airbus A320neo aircraft to flynas Company LCC — a private Saudi low-cost airline headquartered in Riyadh — via a lease agreement. The aircraft was powered by CFM LEAP engines.

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. 2. The specific lease agreement date is unknown. For the time being, AidData has coded the estimated delivery date as the commitment_date field for this project and marked the commitment_date_estimated? field as True.