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Overview

BOC Aviation leases one Boeing 787-9 aircraft to Norwegian Air Shuttle in March 2019

Commitment Year•2019Country of Activity•NorwayDirect Recipient Country of Incorporation•NorwayOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 26, 2019
Start (actual)
Mar 26, 2019
End (actual)
Mar 26, 2019

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project supported the acquisition of an aircraft 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 companies

  • BOC Aviation Limited

Receiving agencies

Private Sector

  • Norwegian Air Shuttle ASA

Loan description

BOC Aviation leases one Boeing 787-9 aircraft to Norwegian Air Shuttle in March 2019

Interest type•Unknown

Narrative

Full Description

Project narrative

On March 26, 2019, financial close was reached on a deal in which BOC Aviation Limited — a Chinese state-owned aircraft leasing company and wholly-owned subsidiary of Bank of China (BOC) — entered into an operating lease agreement with Norwegian Air Shuttle ASA — a Norwegian low-cost airline listed on the Oslo Stock Exchange — for one Boeing 787-9 aircraft.

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%. 3. In aviation finance, financial close typically occurs on or around the delivery date of the final aircraft. As financial close occurred on March 26, 2019, 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 26, 2019 and marked the actual_implementation_start_date_estimated? and actual_implementation_completion_date fields as True.