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Overview

ICBC Leasing leases three Airbus A320 aircraft to AirAsia

Commitment Year•2012Country of Activity•MalaysiaDirect Recipient Country of Incorporation•MalaysiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 1, 2012
Start (planned)
Oct 1, 2012
Start (actual)
Dec 1, 2012
Last repayment (originally scheduled)
Aug 29, 2024

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

  • Capital A Berhad (AirAsia) (Formerly AirAsia Group Berhad)

Loan description

ICBC Leasing leases three Airbus A320 aircraft to AirAsia

Interest type•UnknownMaturity•12 years

Narrative

Full Description

Project narrative

Around September 2012, ICBC Financial Leasing Co., Ltd. (ICBC Leasing) entered into an operating lease agreement with Capital A Berhad (AirAsia), a Malaysian low-cost airline, for three narrow-body Airbus A320 aircraft. The lease had a term of 12 years and was to start in the fourth quarter of 2012. The first aircraft was assembled in Tianjin, China by Airbus (Tianjin) Final Assembly Co., Ltd. and was successfully delivered to AirAsia in December 2012.

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.