EDC signs agreement with China’s AVIC Leasing to finance the purchase of CRJ900 NextGen aircraft

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Export Development Canada (EDC) today signed an agreement with AVIC International Leasing Co. Ltd. (AVIC Leasing) to finance the purchase of CRJ900 NextGen aircraft manufactured and sold by Montreal-based Bombardier.

The procurement and leasing of a growing fleet of aircraft types is the core business of AVIC Leasing, a subsidiary of Aviation Industry Corporation of China (AVIC). The financing is for USD 45 M.

In working with AVIC Leasing and Bombardier customers in China, EDC hopes to assist in bringing more Canadian aircraft to this important growing market, to the benefit of China and to Canada’s aerospace industry overall,” said Lynda Bernst, Strategic Account executive, Transportation Sector, EDC.

The successful cooperation with EDC marks an important milestone for AVIC Leasing in broadening oversea financing channels, representing a good beginning of the establishment of mutual trust and benefit relationship between Chinese leasing companies and foreign export credit agencies,” said Mr. Zhao Hongwei, General Manager of AVIC Leasing. “We look forward to seeing more opportunities to work with EDC in the near future, to further promote the healthy development of China’s aviation leasing market.

In 2012, AVIC Leasing entered into an agreement with Bombardier to develop fleet solutions for the varied business requirements of China’s airlines. The Bombardier portfolio of commercial aircraft is well positioned to meet China’s demand for air transport infrastructure, especially demand in regional aviation.

With a strategy to optimize aircraft and financing solutions in China, AVIC Leasing worked with EDC to reach the first aircraft financing agreement in China involving a Chinese borrower/lessor serving a Chinese regional airline. The transaction involves both offshore (to China) and onshore (in China) jurisdictions, including China’s Tianjin Port Free Trade Zone.

With this milestone, the parties expect additional opportunities to follow that will bring international finance support to onshore leasing of Bombardier aircraft in China. More than 80 Bombardier-produced commercial and business aircraft are currently operating in China.

China Express Airlines will be operating these aircraft under a financial lease with AVIC Leasing. The aircraft will be leased and operated by China Express Airlines Co. (China Express). The airline has ordered 28 CRJ900 NextGen aircraft from Bombardier, and as of March 31, 2015, 14 had been delivered.

OTTAWA – April 8, 2015

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