China Aircraft Leasing Company (CALC) closed the commercial financing of one Airbus A321neo on lease to China Airlines.
Credit Agricole Corporate and Investment Bank (CA-CIB) acted as mandated lead Arranger, facility agent, and security trustee. CA-CIB and E.Sun Commercial Bank, Hong Kong Branch acted as Lenders.
CA CIB, Hong Kong Branch acted as the borrower account bank. The finance parties were represented by Clifford Chance. CALC was advised by Watson Farley & Williams.
Going ahead, CALC is also considering selling some of its assets outside greater China, which could raise about $3bn in a transaction, according to sources. Accordingly, CALC has also reached out to certain prospective buyers for assets. The company is looking to divest around 40 aircraft and approximately 180 aircraft production slots.
A potential divestiture could come as aircraft lessors have picked up an increasing share of the market for jets since the start of the pandemic as airlines look to finance plane purchases without risking their own balance sheets.
According to IBA, for the most sought-after single-aisle aircraft like Airbus’s A320neo and Boeing’s 737 Max lease rates have respectively risen 14% and 20% after the pandemic, leading the global banks to raise the interest rates making it harder for smaller lessors to raise cash to fund aircraft purchases.
Last year, CK Asset exited its aircraft leasing business with a $4.28 billion sale to Carlyle Aviation Partners. In May 2022, SMBC Aviation Capital agreed to buy rival Goshawk Aviation at a $6.7 billion valuation.