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Overview

CMB Financial Leasing leases two Airbus A330-300 aircraft to Flynas

Commitment Year•2023Country 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
Sep 1, 2023
Start (actual)
Sep 1, 2023
End (actual)
Sep 1, 2023

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 two Airbus A330-300 aircraft to Flynas

Interest type•Unknown

Narrative

Full Description

Project narrative

In September 2023, CMB Financial Leasing Co., Ltd. (CMBFL) — a Chinese state-owned leasing company wholly owned by China Merchants Bank — delivered two Airbus A330-300 aircraft to flynas Company LCC — a private Saudi low-cost airline headquartered in Riyadh — under a lease agreement. These aircraft were vintage, produced in 2016, and had previously been leased to South African Airways.

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 sale-and-leaseback 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.