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Overview

BoCom Leasing leases one Airbus A320-200 aircraft to Asiana Airlines

Commitment Year•2014Country 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
Aug 1, 2014
End (actual)
Aug 1, 2014

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 Commercial Banks

  • China Bank of Communications Financial Leasing Co., Ltd. (BoCom Leasing)

Receiving agencies

Private Sector

  • Asiana Airlines, Inc.

Loan description

BoCom Leasing leases one Airbus A320-200 aircraft to Asiana Airlines

Interest type•Unknown

Narrative

Full Description

Project narrative

By at least August 2014, Bank of Communications Financial Leasing Co., Ltd. (BoCom Leasing) — a Chinese state-owned leasing company and wholly-owned subsidiary of Bank of Communications — had 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 one Airbus A320-200 aircraft. The aircraft, with MSN 3641 , was in Asiana's fleet by October 2008 and BoCom Leasing apparently replaced the previous lessor of the aircraft in August 2014. Then, in December 2016, BoCom launched a $300 million USD dual-tranche asset-backed securities (ABS) deal backed by a portfolio of leases, including the A320-200 leased to Asian Airlines as security for a loan. The aircraft was returned to BoCom Leasing on May 7, 2021.

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.