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Overview

ABC Leasing leases one Airbus A350-900 aircraft to Asiana Airlines

Commitment Year•2020Country 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
May 1, 2020

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

  • Agricultural Bank of China Financial Leasing Co., Ltd. (ABC Leasing)

Receiving agencies

Private Sector

  • Asiana Airlines, Inc.

Loan description

ABC Leasing leases one Airbus A350-900 aircraft to Asiana Airlines

Interest type•Unknown

Narrative

Full Description

Project narrative

Prior to May 2020, financial close was reached on a deal in which Agricultural Bank of China Financial Leasing Co., Ltd. (ABC Leasing) — a Chinese state-owned leasing company and wholly-owned subsidiary of the Agricultural Bank of China (ABC) — 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 (30.77% stake at the time of the lease) — for one Airbus A350-900 aircraft. The aircraft was on an operating lease. As of October 2022, ABC Leasing was looking to sell the aircraft. In December 2022, Vmo Aircraft Leasing acquired of the Airbus 350-900 on lease to Asiana Airlines from ABC Leasing.

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.