Overview

BOC Aviation leases two Airbus A319 and seven A320 aircraft to Aeroflot

Commitment Year•2008Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jun 1, 2008

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

BOC Aviation Limited

Receiving agencies

State-owned companies

Aeroflot

Loan description

BOC Aviation leases two Airbus A319 and seven A320 aircraft to Aeroflot

Interest type•Unknown

Narrative

Full Description

Project narrative

Circa June 2008, BOC Aviation leased two Airbus A319 and seven Airbus A320 aircraft to Russian airliner Aeroflot.

Staff comments

1. AidData treats this lease as a loan. 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).