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Overview

BOC Aviation enters into a sale-and-leaseback agreement with Air France for two Boeing 777-200LR freighter aircraft

Commitment Year•2009Country of Activity•FranceDirect Recipient Country of Incorporation•FranceOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 29, 2009
Start (actual)
Feb 1, 2009
End (actual)
Feb 1, 2009

Geospatial footprint

Map overview

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The project was a sale and leaseback agreement in which Air France leased two freighter aircraft. Air France is headquartered at 45 Rue de Paris, 93290 Tremblay-en-France, France. More detailed locational information can be found at: https://www.openstreetmap.org/node/9395207054

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

  • Air France S.A.

Loan desecription

BOC Aviation enters into a sale-and-leaseback agreement with Air France for two Boeing 777-200LR freighter aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

On April 29, 2009, financial close was reached on a deal in which BOC Aviation Limited — a Chinese state-owned leasing company — entered into a sale-and-leaseback agreement with Air France S.A. — the flag carrier airline of France and France-incorporated wholly-subsidiary of Franco-Dutch Air France-KLM S.A. — for two Boeing 777-200LR freighter aircraft. The two aircraft were delivered from Boeing in February 2009.

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. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products.