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Overview

CCB Financial Leasing leases a CFM LEAP-1B27 engine worth $34 million USD to Norwegian Air Shuttle AOC AS

Commitments (Constant USD, 2023)$34,000,000
Commitment Year•2023Country of Activity•NorwayDirect Recipient Country of Incorporation•NorwaySector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 29, 2023
Start (actual)
Mar 29, 2023
End (actual)
Mar 29, 2023

Geospatial footprint

Map overview

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This finance lease agreement supported the acquisition of CFM LEAP-1B27 engine by Norwegian Air Shuttle AOC AS, which is headquartered at Oksenoyveien 3, Postboks 115, Lysaker, 1336. More detailed locational information can be found at: https://www.openstreetmap.org/way/150976400.

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 Commercial Banks

  • CCB Financial Leasing Co., Ltd. (CCBFL)

Receiving agencies

Private Sector

  • Norwegian Air Shuttle AOS AS

Loan description

CCB Financial Leasing leases a CFM LEAP-1B27 engine worth $34 million USD to Norwegian Air Shuttle AOC AS

Interest type•Unknown

Narrative

Full Description

Project narrative

On March 29, 2023, financial close was reached on a deal in which CCB Financial Leasing Co., Ltd. (CCBFL) — a Chinese state-owned leasing company and wholly-owned subsidiary of China Construction Bank Corporation (CCB) — entered into a $34 million USD finance lease agreement with Norwegian Air Shuttle AOC AS — a Norway-incorporated airline and operating subsidiary of Norwegian Air Shuttle ASA — for a CFM LEAP-1B27 engine. This lease was secured (i.e. collateralized) and the use of the proceeds were used for equipment purchase of the CFM LEAP-1B27 engine, via was purchased from the manufacturer by CCB Leasing via a special purpose vehicle (SPV) incorporated in the Tianjin Dongjiang Free Trade Zone (DFTP), with the SPV then entered into the finance lease with Norwegian Air Shuttle. The engine was delivered on or around March 29, 2023.

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. Norwegian Air Shuttle ASA is a Norwegian low-cost airline listed on the Oslo Stock Exchange. In 2020, after financial problems, BOC Aviation Limited became a major shareholder at 12.7%.