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Overview

CDB Aviation Lease Finance leases two Boeing 737-800 aircraft for Sun Country

Commitment Year•2021Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesOverseas Jurisdiction•IrelandSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 20, 2021
Start (actual)
Dec 20, 2021
End (planned)
Mar 31, 2022
End (actual)
Mar 16, 2022

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

  • Sun Country, Inc.

Loan description

CDB Aviation Lease Finance leases two Boeing 737-800 aircraft for Sun Country

Interest type•Unknown

Narrative

Full Description

Project narrative

On November 26, 2021, financial close was reached on a deal in which CDB Aviation Lease Finance DAC — the wholly-owned Ireland-based subsidiary of China Development Bank Financial Leasing Co., Limited (CDB Leasing) — entered into a mandate for an operating lease agreement with Sun Country, Inc. — a Minnesota-incorporated ultra-low cost airline based at Minneapolis–Saint Paul International Airport and wholly-owned subsidiary of Sun Country Airlines Holdings, Inc., a Delaware-incorporated holding company headquartered in Minneapolis, Minnesota listed on the Nasdaq Stock Market — for two Boeing 737-800 aircraft. The 2011-aircraft were formerly operated by Comair in South Africa. The aircraft carried 183 seats in a single economy-class layout and be operated on seasonal, point-to-point routes. The first aircraft was delivered on December 20, 2021. The second aircraft's delivery was expect anticipated in early 2022. The second aircraft was delivered on or around the week including March 16, 2022.

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 bond payments, similarly to a mortgage (with the interest calculated each rental period on the outstanding bond balance). AidData codes capital leases as loans.