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Overview

CDB Aviation enters into a sale-and-leaseback agreement with Scandinavian Airlines for Pre Delivery Payments for five A320neo aircraft (Linked to Record ID#103526)

Commitment Year•2021Country of Activity•SwedenDirect Recipient Country of Incorporation•SwedenOverseas Jurisdiction•IrelandSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 29, 2021
Start (planned)
Jan 1, 2022
End (planned)
Dec 1, 2022

Geospatial footprint

Map overview

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This sale-and-leaseback agreement supported the acquisition of nine aircrafts by Scandinavian Airlines (SAS), which is headquartered at Frösundaviks allé 1, 169 70 Solna, Sweden. More detailed locational can be found at: https://www.openstreetmap.org/way/23999377.

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

Private Sector

  • Scandinavian Airlines System Denmark-Norway-Sweden (SAS)

Loan desecription

CDB Aviation enters into a sale-and-leaseback agreement with Scandinavian Airlines for Pre Delivery Payments for five A320neo aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

On March 29, 2021, CDB Aviation Lease Finance DAC — the wholly-owned Ireland-based subsidiary of China Development Bank Financial Leasing Co., Limited (CDB Leasing) — announced that it had entered into a sale-and-leaseback agreement with Scandinavian Airlines (SAS) — the flag carrier airline of Denmark, Norway, and Sweden — for Pre Delivery Payments (PDP) financing of another five A320neo aircraft for SAS, as well as three Airbus A320neo and one A350-900 aircraft. The five A320neo aircraft associated with the PDPs are set for delivery in 2022. The A350-900 aircraft was delivered on March 26, 2021, and the other three Airbus A320neos are scheduled for delivery in the spring of 2022. The aircraft addition of the aircraft to SAS's fleet support's the airline's sustainability goals.

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. 3. The specific signing date is unknown. For the time being, AidData has coded the announcement date as the Commitment_Date field and marked the Commitment_Date_Estimated? field as True.