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Overview

ICBC Leasing enters into a sale-and-leaseback agreement worth $185 million USD with flydubai for four Boeing 737 MAX aircraft

Commitments (Constant USD, 2023)$170,596,203
Commitment Year•2021Country of Activity•United Arab EmiratesDirect Recipient Country of Incorporation•United Arab EmiratesSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 10, 2021
Start (actual)
Nov 10, 2021
End (actual)
Dec 19, 2021

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of this project was for the ICBC Leasing to enter into a sale-and-leaseback agreement worth $185 million USD with flydubai for four Boeing 737 MAX aircraft. More detailed locational information can be found at: https://www.openstreetmap.org/way/98425234

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

  • ICBC Financial Leasing Co., Ltd. (ICBCFL) (ICBC Leasing)

Receiving agencies

State-owned companies

  • Dubai Aviation Corporation (flydubai)

Loan description

ICBC Leasing enters into a sale-and-leaseback agreement worth $185 million USD with flydubai for four Boeing 737 MAX aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

Prior to November 10, 2021, ICBC Financial Leasing Co., Ltd. (ICBCFL) — a Chinese state-owned leasing company and wholly-owned subsidiary of the Industrial and Commercial Bank of China (ICBC) — via Ireland-incorporated special purpose vehicle Sky High 128 Leasing Company Limited entered into a sale-and-leaseback agreement worth $185 million USD with Dubai Aviation Corporation — a Dubai-incorporated low-cost airline owned by the Investment Corporation of Dubai that does business as flydubai — for four Boeing 737 MAX aircraft. The aircraft were equipped with CFM LEAP-1B28 engines. Financial close was achieved on December 2, 2021. The first aircraft was delivered on November 10, 2021 and the fourth and final aircraft was delivered on December 18 or 19, 2021.

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. $185 million USD was assessed by industry media sources to be the value of this sale-and-leaseback agreement.