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Overview

ICBC Financial Leasing leases one Airbus A320 aircraft to Air Corsica

Commitment Year•2016Country of Activity•FranceDirect Recipient Country of Incorporation•FranceSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 15, 2016
Start (actual)
Mar 15, 2016
End (actual)
Mar 15, 2016

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

  • ICBC Financial Leasing Co., Ltd. (ICBCFL) (ICBC Leasing)

Receiving agencies

State-owned companies

  • Compagnie Aérienne Corse Méditerranée S.A.E.M. (Air Corsica)

Loan description

ICBC Financial Leasing leases one Airbus A320 aircraft to Air Corsica

Interest type•Unknown

Narrative

Full Description

Project narrative

Prior to March 15, 2016, ICBC Financial Leasing Co., Ltd. (ICBCFL) — a Chinese state-owned leasing company and wholly-owned subsidiary of the Industrial and Commercial Bank of China (ICBC) — entered into an operating lease with Compagnie Aérienne Corse Méditerranée S.A.E.M. — the flag carrier airline of the French region of Corsica, trading as Air Corsica, that is majority-owned by the public sector Corsican Regional Authority and has Air France–KLM S.A. as a minority shareholder — for one 2007-vintage Airbus A320 aircraft. The transaction received financial close on March 15, 2016.

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. In aviation finance, financial close typically occurs on or around the delivery date of the final aircraft. As financial close occurred on March 15, 2016, the aircraft was almost certainly delivered on or around that date. Thus AidData has coded the actual_implementation_start_date and actual_implementation_completion_date fields as March 15, 2016 and marked the actual_implementation_start_date_estimated? and actual_implementation_completion_date fields as True. 3. The commitment date for the lease agreement is unknown. For the time being, AidData has coded the financial closure date, March 15, 2016, as the commitment date and marked the commitment_date_estimated? field as True.