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Overview

CDB Aviation leases two Airbus A321 aircraft to Finnair

Commitment Year•2016Country of Activity•FinlandDirect Recipient Country of Incorporation•FinlandOverseas Jurisdiction•IrelandSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2016
Start (planned)
Dec 21, 2017
Start (actual)
Dec 18, 2017
End (planned)
Jun 21, 2018
End (actual)
Jul 27, 2018

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

  • CDB Aviation Leasing

Receiving agencies

State-owned companies

  • Finnair Plc

Loan description

CDB Aviation leases two Airbus A321 aircraft to Finnair

Interest type•UnknownMaturity•8 years

Narrative

Full Description

Project narrative

In December 2016, CDB Aviation Lease Finance DAC — the wholly-owned Ireland-based subsidiary of China Development Bank Financial Leasing Co., Limited (CDB Leasing) — entered into an operating lease agreement with Finnair Plc — Finland's flag carrier airline that is publicly traded by majority-owned by the Finnish Prime Minister's Office — for two new Airbus A321 aircraft. These narrowbody aircraft had 209 seats each. The lease agreements have a minimum term of eight years. The first aircraft was scheduled to be delivered for the winter season 2017/2018 and the second was expected to be delivered for summer season 2018. CDB Aviation delivered the first aircraft on or around December 18, 2017. CDB Aviation delivered the second aircraft on July 26, 2018.

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.