Press Release

Bank of China is First Chinese Bank to Provide Aircraft Finance to Lufthansa

31 Mar 2008

Bank of China has signed agreements with Deutsche Lufthansa AG for the financing of two Airbus A330-300 aircraft under Japanese Operating Lease (“JOL”) structures.  The Euro denominated facilities of approximately US$154 million are for a term of over 12 years.  Both aircraft were recently delivered to the airline.

This is the first aircraft debt facility arranged for Lufthansa by a Chinese bank.  BOC Aviation, the bank’s wholly-owned subsidiary, acted as the debt arranger for the deal.

The JOL is one of the major aircraft financing structures used in the global aviation finance markets in recent years. Bank of China has been expanding its aviation finance business by adding new financing structures, promoting international aviation finance and, through coordination with its overseas subsidiaries and branches, providing debt finance under JOL structures for a number of domestic and overseas airlines.
 
“We are pleased to have Bank of China join our lending banks’ group” said Markus Ohlert, Director Corporate Finance, Lufthansa. “Chinese banks are becoming important sources of finance for airlines worldwide. We look forward to growing more business with Bank of China.”

“As the aviation specialist unit of Bank of China Group, BOC Aviation is proactively sourcing business relationships for the Group.” Steven Townend, Chief Commercial Officer, BOC Aviation said. “By combining our specialized expertise together with Bank of China Group’s financial resources and comprehensive product offerings, we are able to provide a full suite of financial services to airlines worldwide.”

BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 80 modern aircraft flying with airlines worldwide. In addition, the company has 61 aircraft on firm order for delivery through to 2013. 

BOC Aviation is 100% owned by Bank of China.