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Overview

ICBC Leasing leases three Airbus A320neo aircraft to Jazeera Airways

Commitment Year•2019Country of Activity•KuwaitDirect Recipient Country of Incorporation•KuwaitSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 20, 2019
End (actual)
Dec 1, 2021

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

  • Jazeera Airways K.S.C.P.

Loan description

ICBC Leasing leases three Airbus A320neo aircraft to Jazeera Airways

Interest type•Unknown

Narrative

Full Description

Project narrative

On August 20, 2019, ICBC Financial Leasing Co., Ltd. (ICBCFL; ICBC Leasing) — a Chinese state-owned leasing company and wholly-owned subsidiary of the Industrial and Commercial Bank of China (ICBC) — was awarded a finance mandate for an operating lease with Jazeera Airways K.S.C.P. — a Kuwaiti low-cost airliner — for three Airbus A320neo aircraft. The aircraft were to be delivered in August and September 2020. Financial close was achieved on June 17, 2021. One aircraft was delivered in August 2021. The last aircraft was delivered in or around December 2021.

Staff comments

1. Jazeera Airways K.S.C.P. (Arabic: طيران الجزيرة) is a Kuwaiti low-cost airline with its head office on the grounds of Kuwait International Airport in Al Farwaniyah Governorate, Kuwait. Its parent company is Boodai Group. 2. 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).