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Overview

BOC Aviation enters into $540 million finance lease transaction with Indigo for ten Airbus A320NEO aircraft

Commitments (Constant USD, 2023)$540,000,000
Commitment Year•2023Country of Activity•IndiaDirect Recipient Country of Incorporation•IndiaOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 23, 2023

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 $540 million finance lease transaction with Indigo for ten Airbus A320NEO aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

On August 23, 2023, BOC Aviation entered into a $540 million finance lease transaction with InterGlobe Aviation Limited (IndiGo) for ten Airbus A320NEO aircraft. The aircraft were to be powered by CFM LEAP-1A engines and they were originally scheduled for delivery during calendar year 2023.

Staff comments

1. IndiGo is India’s largest passenger airline. 2. 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. 3. 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. 4. 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.