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Overview

CDB Aviation Lease leases two Boeing 737-800 aircraft to Neos

Commitment Year•2022Country of Activity•ItalyDirect Recipient Country of Incorporation•ItalySector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 8, 2022
Start (actual)
Dec 9, 2022
End (actual)
Feb 7, 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

  • CDB Aviation Lease Finance DAC

Receiving agencies

Private Sector

  • Neos S.p.A.

Loan description

CDB Aviation Lease leases two Boeing 737-800 aircraft to Neos

Interest type•Unknown

Narrative

Full Description

Project narrative

On December 8, 2022, CDB Aviation Lease Finance DAC — the wholly-owned Ireland-based subsidiary of China Development Bank Financial Leasing Co., Limited (CDB Leasing) — received a finance mandate from Neos S.p.A. — a private Italian airline headquartered in Somma Lombardo, Lombardy — for an operating lease for two Boeing 737-800 aircraft. Financial close was achieved on December 13, 2022. The two aircraft were previously leased to and been reclaimed from Russian carrier Nordwind Airlines. The first aircraft was delivered on December 9, 2022. The aircraft were delivered on or around February 7, 2023.

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.