CALC Launches the First Sustainability-linked Aircraft Pre-Delivery Payment Syndicated Loan in the Global Aircraft Leasing Industry

(Hong Kong, 30 Jan 2024） - China Aircraft Leasing Group Holdings Limited ("CALC" or the "Company", together with its subsidiaries, the "Group"; SEHK stock code: 01848), a full value chain aircraft solutions provider for the global aviation industry, is pleased to announce that the Group has recently launched an unsecured revolving syndicated loan totaling a maximum of US$500 million, with an initial placement size of US$350 million, to finance part of Pre-Delivery Payments (“PDP”) for its new aircraft orders, marking the largest aircraft PDP finance cross-border transactions in global aircraft leasing market in 2023, which also represents the aircraft leasing industry's first ever sustainability-linked PDP loan facility. 

The loan is a dual-currency facility with US dollars and Chinese yuan which aligns with China’s new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other. China Construction Bank Shanghai Branch served as the lead arranger, Bank of China Shanghai Branch, Bank of Communications Shanghai Branch were joint lead arrangers, and Shanghai Pudong Development Bank Beijing Branch was participating bank. China Construction Bank Shanghai Branch and Bank of China Shanghai Branch also acted as agent banks, while CCX Green Finance Technology (Beijing) Limited served as the Sustainability advisor of the deal.

As a leading Chinese lessor, CALC has previously issued RMB1 billion debut low-carbon transition bond through its wholly-owned subsidiary China Asset Leasing Company Limited (“CALC(TJ)”) in 2022 and completed its first and second tranche of low-carbon transition corporate bonds issuance in 2023, demonstrating the investment goal of the Group, especially CALC’s commitment towards a green future for aviation.

Mr. Conrad Li, Chief Financial Officer and Chief Strategy Officer of CALC said, “All the banks engaged in this deal are leading financiers in China. We thank them all for their full support and recognition. Backed by China’s “dual carbon” goals, investment in ESG and green finance products in the country has gradually become a market trend, fueling the rapid development of related investments. The PDP adds diversity to the types of financing products for the Group, it also offers a new choice for China’s ESG investors. The transaction reflected banking community’s recognition of CALC’s commitment to sustainable operations backed by its one-stop fleet upgrade services, endorsing the Company’s advantages as a leading Chinese aircraft lessor and its determination to support green development in aviation.”