Skip to content
AidData logo

Overview

BOC Aviation signs a sale-and-leaseback agreement with Qatar Airways for three Airbus A350-900 aircraft

Commitments (Constant USD, 2023)$987,126,104
Commitment Year•2019Country of Activity•QatarDirect Recipient Country of Incorporation•QatarOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 5, 2019

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

  • Qatar Airways Company Q.C.S.C.

Loan description

BOC Aviation signs a sale-and-leaseback agreement with Qatar Airways for three Airbus A350-900 aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

On August 5, 2019, BOC Aviation, the Bank of China's (BOC) aircraft leasing subsidiary, signed a sale-and-leaseback agreement with Qatar Airways, Qatar's state-owned air service provider, for three new Airbus A350-900 twin-aisle aircraft powered by Rolls Royce Trent XWB engines. Although the precise financial details are unknown, Airbus A350-900 aircraft had a listing price of $317 million at the time of the agreement. All three aircraft were successfully delivered by September 27, 2019. The speed and smoothness of the transaction was attributed to BOC Aviation's 20-year long relationship with Qatar Airways by BOC Aviation CEO Robert Martin.

Staff comments

1. For the time being, AidData is estimating the value of this sale-and-lease agreement at $951 million, derived from multiplying the listed price of the purchased aircraft at the time ($317 million) by the amount of aircraft purchased (3). 2. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products. 3. The length of the lease is currently unknown. 4. The entity accountable for the lease as well as any guarantees or collateral attached to the agreement are currently unknown.