CDB Aviation Signs New Sustainability Linked Unsecured Term Loan for $506 million
DUBLIN – April 3, 2024 – CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (“CDB Leasing”), announced today that the lessor executed a new Sustainability Linked Loan (“SLL”) transaction on March 26, 2024, anchored with a $506 million unsecured term loan facility.
The new facility is the second SLL-type transaction for the lessor, following the issuance of its inaugural sustainability-linked syndicated term loan in December 2023.
The facility was financed by a group of MLA banks, including: Bank of China (Hong Kong) Limited, China CITIC Bank International Limited, Bank of Communications Co., Ltd, Sydney Branch, Bank of Communications Co., Ltd, Tokyo Branch, Bank of Communications (Hong Kong) Limited, Agricultural Bank of China Limited London Branch, The Bank of East Asia, Limited, Industrial and Commercial Bank of China Limited London Branch, Shanghai Pudong Development Bank Co., Ltd, acting through its Hong Kong Branch, Shanghai Pudong Development Bank Co., Ltd., London Branch, and China Construction Bank Corporation London Branch.
Bank of China Hong Kong acted as Facility Agent and Credit Agricole as Sole Sustainability Agent.
“Thank you to the Capital Markets, Deal, Legal, Finance, and ESG teams for successfully executing this second sustainability-linked transaction,” stated Jie Chen, CDB Aviation’s Chief Executive Officer. “We’re continuing to build on our platform’s robust ability to engage global financial institutions to diversify our financing sources, while advancing our sustainability strategy and broadening relationships within the banking and capital market sectors.”
Similar to the inaugural facility, the SLL parameters are contingent on the satisfaction of Sustainability Performance Targets (“SPTs”), based on the lessor’s three Key Performance Indicators (“KPIs”), including two strong Environmental and one Social KPIs related to:
- reducing the carbon intensity of the CDB Aviation’s fleet, focusing on the most fuel-efficient aircraft;
- increasing the share of new generation aircraft in the lessor’s fleet, pursuing its target to reach 60% of new generation aircraft (by number of aircraft) by the end of 2025; and
- increasing the level of Diversity, Equity, and Inclusion (“DEI”)-related training for the workforce.
Forward-Looking Statements
This press release contains certain forward-looking statements, beliefs or opinions, including with respect to CDB Aviation’s business, financial condition, results of operations or plans. CDB Aviation cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ”may,” “will,” “seek,” “continue,” “aim,” “anticipate,” “target,” “projected,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” “achieve” or other terminology or words of similar meaning. These statements are based on the current beliefs and expectations of CDB Aviation’s management and are subject to significant risks and uncertainties. Actual results and outcomes may differ materially from those expressed in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Except as required by applicable law, we do not undertake any obligation to, and will not, update any forward-looking statements, whether as a result of new information, future events or otherwise.
About CDB Aviation
CDB Aviation is a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (“CDB Leasing”) a 38-year-old Chinese leasing company that is backed mainly by the China Development Bank. CDB Aviation is rated Investment Grade by Moody’s (A2), S&P Global (A), and Fitch (A+). China Development Bank is under the direct jurisdiction of the State Council of China and is the world’s largest development finance institution. It is also the largest Chinese bank for foreign investment and financing cooperation, long-term lending and bond issuance, enjoying Chinese sovereign credit rating.
CDB Leasing is the only leasing arm of the China Development Bank and a leading company in China’s leasing industry that has been engaged in aircraft, infrastructure, ship, commercial vehicle and construction machinery leasing and enjoys a Chinese sovereign credit rating. It took an important step in July 2016 to globalize and marketize its business – listing on the Hong Kong Stock Exchange (HKEX STOCK CODE: 1606). www.CDBAviation.aero
Media contact:
Paul Thibeau
Paul.Thibeau@CDBAviation.aero
+1 612 594 9844