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Overview

CMB Financial Leasing leases two Airbus A350-900 aircraft to Deutsche Lufthansa

Commitment Year•2021Country of Activity•GermanyDirect Recipient Country of Incorporation•GermanySector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 28, 2021
Start (actual)
Oct 28, 2021
End (actual)
Oct 28, 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

  • China Merchants Bank Financial Leasing Co., Ltd. (CMBFL)

Receiving agencies

Private Sector

  • Deutsche Lufthansa AG

Loan description

CMB Financial Leasing leases two Airbus A350-900 aircraft to Deutsche Lufthansa

Interest type•Unknown

Narrative

Full Description

Project narrative

On October 28, 2021, financial close was reached on a deal in which China Merchants Bank Financial Leasing Co., Ltd. (CMBL) — a Chinese state-owned leasing company wholly owned by China Merchants Bank — entered into a direct bilateral finance lease agreement with Deutsche Lufthansa AG — Germany's flag carrier airline headquartered in Cologne and one of the world's largest airlines — for two Airbus A350-900 aircraft. The two widebody aircraft were delivered to Lufthansa on October 28, 2021 at the Frankfurt and Munich airports.

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.