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Overview

ICBC Leasing leases three Airbus A321 aircraft to Asiana Airlines

Commitment Year•2013Country of Activity•KoreaDirect Recipient Country of Incorporation•KoreaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 18, 2013
End (actual)
Jun 18, 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

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

Receiving agencies

Private Sector

  • Asiana Airlines, Inc.

Loan description

ICBC Leasing leases three Airbus A321 aircraft to Asiana Airlines

Interest type•Unknown

Narrative

Full Description

Project narrative

On June 18, 2013, financial close was reached on a deal in which ICBC Financial Leasing Co., Ltd. (ICBCFL; ICBC Leasing) — a Chinese state-owned leasing company and wholly-owned subsidiary of the Industrial and Commercial Bank of China (ICBC) — entered into an operating 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 three Airbus A321 aircraft. The aircraft would be on an operating lease.

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. In aviation finance, financial close often occurs on or around the delivery date of the final aircraft. As financial close occurred on June 18, 2013, the last aircraft was likely delivered on or around that date. Thus AidData has coded the actual_implementation_completion_date field as June 18, 2013 and marked the actual_implementation_completion_date_estimated? fields as True.