Bombardier inks multi-billion dollar leasing deal
March 3, 2011, Toronto - Bombardier Aerospace today announced that it has signed a memorandum of understanding (MOU) with ICBC Financial Leasing Co., Ltd. (ICBC Leasing).
ICBC Leasing is a leading leasing company in China, and Industrial Commercial Bank of China (ICBC), its major shareholder, is one of the world's largest banks. The agreement clears the way for ICBC Leasing to provide Bombardier's customers with advance payment financing, delivery financing and leasing solutions for Q-Series, CRJ Series and CSeries commercial aircraft, as well as Learjet, Challenger and Global business aircraft. The capital available from ICBC Leasing totals up to $8 billion US, for both domestic and international transactions.
The MOU also covers financing for Bombardier Aerospace, as well as its current and potential future subsidiaries and affiliates, in the areas of maintenance, service and production, and allows ICBC Leasing to provide Bombardier Aerospace with credit facilities, hedging and settlement services for general requirements through affiliates of ICBC.
"This MOU provides mutual benefits to Bombardier and ICBC Leasing since it addresses both parties' objectives of providing optimized aircraft solutions to operators in China and elsewhere," said Guy C. Hachey, President and Chief Operating Officer, Bombardier Aerospace. "We look forward to a long-lasting, fruitful cooperation with ICBC Leasing."
"The financial resources of ICBC Leasing put Bombardier in a stronger competitive position and support our long-term objective of growing our business in China and the Asia-Pacific region," said Mairead Lavery, Vice President, Strategy, Business Development and Structured Finance, Bombardier Aerospace.
"Today marks the beginning of an important new business relationship between Bombardier and ICBC Leasing," said Cong Lin, President, ICBC Leasing. "The MOU provides a framework to support the development of the global air transportation network."