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Overview

CDB Leasing participates in $546 million leasing agreement to support Wizz Air Group's acquisition of six Airbus A320 aircraft (Linked to Record ID#91999)

Commitments (Constant USD, 2023)$564,548,325
Commitment Year•2013Country of Activity•HungaryDirect Recipient Country of Incorporation•JerseySector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 13, 2013

Geospatial footprint

Map overview

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The project established the lease of six Airbus A320 aircraft by Wizz Air, which is headquartered at the Laurus Offices, Kőér street 2/A, Building B, 1103, Budapest, Hungary. More detailed locational information can be found at: https://www.openstreetmap.org/way/325119606, https://www.openstreetmap.org/way/325119604, https://www.openstreetmap.org/way/325119601

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

  • China Development Bank Financial Leasing Co., Ltd. (CDB Leasing)

Receiving agencies

Private Sector

  • Wizz Air

Loan description

CDB Leasing participates in $546 million leasing agreement to support Wizz Air Group's acquisition of six Airbus A320 aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

On November 13, 2013, CDB Leasing Co., Ltd. — a subsidiary of China Development Bank (CDB) — announced that a purchase and leaseback deal of 6 brand new Airbus A320 aircraft has been signed with Hungary's Wizz Air (W6), the largest low-cost airline in Central and Eastern Europe. The aircraft involved were to be delivered successively from 2014 to 2015, with a list price of US$546 million. ‘The newly added 6 aircraft will be used for the expansion of routes and bases, while will help keep our fleet at an average of four years, becoming one of the youngest fleets in Europe. And we are looking forward to establish a long-term partnership with CDB Leasing,’ said Jozsef Varadi, CEO of Wizz Air. ‘CDB Leasing is by far the earliest and capitally largest leasing company in China, while its aircraft leasing business stands out and ranks among the world's top 10 specialized aviation leasing companies. The aircraft leasing cooperation with Wizz Air for 6 A320s is a new milestone of CDB Leasing's global business,’ commented Wang Chong, chairman of CDB Leasing. Wizz Air and CDB leasing later signed another leaseback agreement in 2015 to support Wizz Air's acquisition of six A321 aircraft (as captured via Record ID#91999).”

Staff comments

1. Wizz Air is the largest budget airline in Central and Eastern Europe, operating its fleet of aircraft from 16 bases with more than 270 routes connecting 93 destinations across 32 countries. 2. AidData assumes that the November 13, 2013 agreement was a capital lease agreement. 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.