CALC Enters into Finance Lease Receivables Realisation Transactions for Three Aircraft

Eleanor Steed
By Eleanor Steed September 29, 2016 13:01

CALC Enters into Finance Lease Receivables Realisation Transactions for Three Aircraft

China Aircraft Leasing Group (CALC), has successfully entered into finance lease receivables transactions (FLR Transaction) with a trust, which agreed to purchase the financial lease receivables of three aircraft at a total consideration of approximately US$ 103.5 million (equivalent to approximately HK$ 807.3 million) on 26 September 2016. The realisation transaction is structured into senior and junior tranches in order to suit the needs and strategies of different investors.

Since 2013, CALC has been advancing its rental realisation products to meet the changing needs of the market. Winnie LIU, Deputy CEO and Chief Commercial Officer of CALC, said: “The transaction showcases the Group’s continued innovation on rental realisation products which facilitate further development of China’s aviation finance sector, while fostering the Group’s already-diversified financing channels and enhanced capital liquidity.”

LIU added: “As a full value-chain aircraft solution provider, the Group has pioneered a wider range of alternative financing channels, including issuance of HKD convertible bonds, RMB medium-term notes in China, as well as USD senior and unsecured bonds which have been well received by the market. Our strength in managing financial risks, and optimizing our financial leverage, means that we are capable of providing superior and one-stop aircraft solutions to our airline customers. As part of CALC’s global expansion, we will continue to explore innovative financing channels to expand our fleet at a sustainable pace.”

Eleanor Steed
By Eleanor Steed September 29, 2016 13:01