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Overview

ICBC Leasing enters into sale-and-leaseback agreement with British Airways for two Boeing 777-200ER aircraft

Commitment Year•2009Country of Activity•United KingdomDirect Recipient Country of Incorporation•United KingdomSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 1, 2009

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

  • British Airways PLC (BA)

Loan description

ICBC Leasing enters into sale-and-leaseback agreement with British Airways for two Boeing 777-200ER aircraft

Interest type•Unknown

Narrative

Full Description

Project narrative

In November 2009, ICBC Financial Leasing Co., Ltd. (ICBC Leasing) entered into a sale-and-leaseback agreement with UK flag carrier airline British Airways PLC (BA) for two Boeing B777-200ER aircraft. The value of this agreement is unknown.

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.