Narrative
Full Description
Project narrative
On July 13, 2018, ICBC Aviation Leasing Company Limited — a Chinese state-owned leasing company — was mandated by Qatar Airways Company Q.C.S.C. — the flag carrier airline of Qatar wholly owned by the Government of Qatar — for four Airbus A350-900 aircraft. The four aircraft were new Airbus A350-900 aircraft powered by RR Trent XWB-84 engines. The use of the proceeds of the sale-and-leaseback were to be used by the borrower for general corporate purposes. The third aircraft was delivered on on September 29, 2018. Financial close was achieved on October 28, 2018.
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. 2. Sale and leaseback (or sale-leaseback) agreements are generally considered to be off-balance-sheet hybrid debt products. 3. In aviation finance, financial close typically occurs on or around the delivery date of the final aircraft. As financial close occurred on October 28, 2018, the last aircraft was almost certainly delivered on or around that date. Thus AidData has coded the actual_implementation_completion_date fields as that date and marked the actual_implementation_completion_date fields as True.