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Overview

BOC Aviation leases one late 2008 vintage and three new Boeing 737-800 aircraft to Virgin Blue

Commitment Year•2009Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2009
End (planned)
Dec 31, 2009
Last repayment (originally scheduled)
Feb 27, 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

Private Sector

  • Virgin Australia Airlines Pty Ltd (formerly Virgin Blue Australia Pty Ltd)

Loan description

BOC Aviation leases one late 2008 vintage and three new Boeing 737-800 aircraft to Virgin Blue

Interest type•UnknownMaturity•10 years

Narrative

Full Description

Project narrative

In late February or early March 2009, BOC Aviation Limited entered into a sale-and-leaseback agreement with Virgin Blue Australia Pty Ltd — an Australia-based airline now known as Virgin Australia — for one late 2008 vintage aircraft and three new Boeing 737-800 aircraft. The aircraft were to be leased for an average lease term of 10 years and the three new aircraft were scheduled to be delivered in the fourth quarter of 2009.

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.