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Overview

Bank of China contributes to a syndicated loan to Finnair for the JOLCO financing of one Airbus 350-900 aircraft

Commitment Year•2016Country of Activity•FinlandDirect Recipient Country of Incorporation•FinlandSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 13, 2016
Start (actual)
Jan 13, 2016
End (actual)
Jan 13, 2016

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of this project was for Bank of China to contribute to a syndicated loan to Finnair for the JOLCO financing of one Airbus 350-900 aircraft. More detailed locational information can be found at: https://www.openstreetmap.org/way/221928813

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

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • BNP Paribas S.A.
  • Tokyo Century Corporation (formerly Century Tokyo Leasing Corporation)

Receiving agencies

State-owned companies

  • Finnair Plc

Loan description

Bank of China contributes to a syndicated loan to Finnair for the JOLCO financing of one Airbus 350-900 aircraft in 2016

Interest type•Unknown

Narrative

Full Description

Project narrative

During the week of January 13, 2016, a syndicate of three lenders — the Bank of China (BOC), BNP Paribas S.A., and Century Tokyo Leasing — entered into a syndicated loan agreement with Finnair Plc — Finland's flag carrier airline that is publicly traded by majority-owned by the Finnish Prime Minister's Office — for the JOLCO financing of one Airbus 350-900 aircraft. The specific aircraft was MSN 20. BNP Paribas and BOC arranged the deal, while Century Tokyo Leasing provided mezzanine debt, and NTT Finance and IBJ Leasing provided equity.

Staff comments

1. A Japanese Operating Lease with Call Option financing (JOLCO) is a type of financing arrangement commonly used in the aviation and shipping industries. It involves a Japanese investor purchasing an asset, such as an aircraft or ship, and leasing it to an operator for a fixed period of time, typically ranging from 5 to 12 years. The lease payments cover the investor's costs, including the purchase price of the aircraft, interest payments, and fees. At the end of the lease term, the operator has the option to purchase the asset at a pre-agreed price, known as the "call option". The lenders typically lend to a special purpose vehicle (SPV) which then leases it to the operator. 2. In aviation finance, financial close typically occurs on or around the delivery date of the final aircraft. As financial close occurred on or around January 13, 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 January 13, 2016 and marked the actual_implementation_start_date_estimated? and actual_implementation_completion_date fields as True.