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Overview

BOC Aviation leases two Airbus A321-200 to Asiana Airlines

Commitment Year•2012Country of Activity•KoreaDirect Recipient Country of Incorporation•KoreaOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 10, 2012
Start (planned)
Dec 31, 2013
End (planned)
Dec 31, 2013

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

  • Asiana Airlines, Inc.

Loan description

BOC Aviation leases two Airbus A321-200 to Asiana Airlines

Interest type•Unknown

Narrative

Full Description

Project narrative

On July 10, 2012, financial close was reached on a deal in which BOC Aviation Limited — a Chinese state-owned aircraft leasing company and wholly-owned subsidiary of Bank of China (BOC) — entered into a lease agreement with Asiana Airlines, Inc. — a South Korea-incorporated airline headquartered in Seoul and listed on the Korea Exchange with Kumho Industrial Co., Ltd. as its largest shareholder (30.08% stake at the time of the lease) — for two new Airbus A321-200 aircraft. The aircraft were powered by IAE2533-A5 SelectOne engines and were intended to be used by Asiana Airlines to meet capacity needs on routes in Asia, particularly in Japan and China. The aircraft were scheduled for delivery in the second half of 2013.

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.