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Overview

BOC Aviation enters into $212 million sale and leaseback agreement with Indigo for four Airbus A321NEO aircraft

Commitments (Constant USD, 2023)$218,727,570
Commitment Year•2020Country of Activity•IndiaDirect Recipient Country of Incorporation•IndiaOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 15, 2020
Start (actual)
Sep 9, 2020

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

  • InterGlobe Aviation Limited

Loan description

BOC Aviation enters into $212 million sale and leaseback agreement with Indigo for four Airbus A321NEO aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

On December 15, 2020, BOC Aviation entered into a $212 million sale and leaseback agreement with InterGlobe Aviation Limited (IndiGo) pursuant to which it agreed to purchase four Airbus A321NEO aircraft from InterGlobe Aviation Limited and to lease the aircraft back to InterGlobe Aviation Limited. The aircraft were to be powered by CFM Leap engines. The first aircraft was delivered to Indigo on September 9, 2020.

Staff comments

1. IndiGo is India’s largest passenger airline. 2. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products. 3. 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. 4. BOC Aviation Limited is a leading aircraft leasing company with a fleet of young, modern aircraft flying with over 40 airlines worldwide. It offers a wide range of services: operating leases, purchase-and-leasebacks, lease management and aircraft finance services, both directly and through its parent Bank of China. 5. InterGlobe Aviation Limited, doing business as IndiGo, is an Indian low-cost airline headquartered in Gurgaon, Haryana, India. It is the largest airline in India by passengers carried and fleet size, with a 61.6% domestic market share as of May 2024.