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Overview

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

Commitments (Constant USD, 2023)$2,017,834,910
Commitment Year•2016Country 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
Dec 22, 2016
Start (actual)
Nov 24, 2017
End (actual)
Jun 21, 2018

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 sale-and-leaseback agreement with Qatar Airways for six Airbus A350-900 aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

On December 22, 2016, BOC Aviation, Bank of China's (BOC) wholly-owned aircraft leasing subsidiary, entered into a sale-and-leaseback agreement with Qatar Airways, a Qatari state-owned air service provider, for six Airbus 350-900 aircraft. The aircraft had a cumulative listing price of $1.85 billion. However, the final deal was likely significantly lower due to discounting and other factors, according to BOV Aviation. All six aircraft were individually delivered to Qatar Airways on these dates: November 24, 2017; December 29, 2017; April 18, 2018; April 24, 2018; May 31, 2018; and June 21, 2018.

Staff comments

1. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products. 2. For the time being, AidData is estimating the transaction amount ($1.85 billion) based off the listed price of the leased aircraft according to contemporary sources. The actual price of the sale-and-leaseback agreement may be significantly lower, depending on discounts and other factors.