CDB Aviation Executes $660MM Portfolio Financing Backed by 13 Aircraft

CDB Aviation, a wholly-owned Irish subsidiary of China Development Bank Financial Leasing, entered into a facility agreement for the secured portfolio of 13 Airbus and Boeing aircraft valued at approximately $660 million. The transaction brings the lessor’s executed year-to-date financings to a total of $2.53 billion.

This is the first portfolio financing executed by CDB Aviation since the onset of the COVID-19 pandemic and it is secured with a combination of Airbus A320-200 and A350-900 as well as Boeing 737 MAX 8 and 787-9 Dreamliner aircraft.

“Diversifying financing sources at a competitive cost of capital is one of our key objectives,” Brendan O’Neill, CFO of CDB Aviation, said, noting that the transaction demonstrates the strong and wide-ranging relationships the company has built over the years with members of the banking and capital markets communities.

The facility is provided by a group of banks, including Natixis, MUFG Bank, Crédit Agricole Corporate and Investment Bank, BNP Paribas, Nord/LB, Société Générale and The Hongkong and Shanghai Banking Corporation. Crédit Agricole Corporate and Investment Bank acted as facility agent and security trustee, and Natixis and MUFG Bank jointly coordinated the transaction.

“We are very pleased to welcome our existing lenders and counterparties to this new facility, all of whom are major international aviation lenders, and look forward to continuing to build long-term relationships with them. We also appreciate the strong support from our shareholder in concluding this transaction,” O’Neill said.

“Our continued significant momentum, notwithstanding the toughest market the aircraft leasing industry has ever experienced, speaks to the strength of our integrated platform and our team’s foremost ability to execute,” Patrick Hannigan, CEO of CDB Aviation, said. “The lenders’ recognition of our platform’s core strengths is the direct result of collaborative efforts of our entire team, with their unfaltering commitment to our long-term vision and continued hard work in all aspects of our operations, all with the goal of supporting airline customers in navigating this pandemic-effected market environment.”

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