CDB Leasing Corp, a subsidiary of China Development Bank, the first lender to provide M&A loans in China, recently inked a memorandum of understanding with Airbus on airplane leasing, financing and capital management.
Pursuant to the MOU, the Chinese lender will provide US$4 billion in financing over the next five years to airlines that buy Airbus planes, including planes assembled in the Airbus plant in Tianjin.
Wang Chong, president of CDB Leasing, said the firm hopes to expand its share of the plane leasing market. He did not deny that the firm may directly purchase some planes from Airbus to lease them to airlines.
Lei Yi, a representative of Airbus, said the cooperation with CDB Leasing will help Airbus earn profits despite the world economic crisis.
Reportedly, the Shenzhen-based company, whose assets exceed RMB 36 billion, is the first enterprise dealing in airplane leasing to lease 51 planes. Last year it inked a US$2.2-billion contract with Brazilian firm Embraer, one of the largest aircraft manufacturers in the world, on financing for planes.
Source: China Knowledge
