Avolon will invest $17.2 million to take a 20% stake in a new aircraft leasing joint venture with China’s Cinda Financial Leasing.
To be called Jade Leasing, the venture will have registered capital of $85.5 million, Avolon’s parent company Bohai Capital says in a stock exchange disclosure.
In addition to its $68.6 million equity investment, Cinda will advance Jade a $280 million loan to fund its aircraft acquisitions, which will be acquired from Avolon. The Bohai unit will also act as the servicer to Jade’s portfolio.
Cinda’s investment is being made via a Hong Kong based subsidiary. The company operates largely as a financial lessor, and offers a range of asset management, trust and other financial services across China.
Flight Fleets Analyzer shows that it owns a Boeing 737-800 (MSN 29947) that is leased to Hainan Airlines and operated by Lucky Air.
The latest joint venture comes after Avolon sold the last assets in its Avolon Capital Partners joint venture with Wells Fargo during 2017. The Dublin-based lessor had a 25% stake in Avolon Capital Partners, which at its peak had a portfolio of nine Boeing 737s and A320 family aircraft.
Source: Cirium Dashboard