China Development Bank Financial Leasing Co to finance purchase of 8 Airbus aircraft

China Development Bank Financial Leasing Co is the leasing arm of China Development Bank (CDB), HNA’s largest creditor.

In a corporate filing, China Development Bank Financial Leasing Co, the aviation leasing arm of China Development Bank stated, it will finance the purchase of 8 Airbus A330 aircraft for airlines that are affiliated to the HNA Group.

These jets will be delivered by the end of 2018, in accordance with the original purchase contract agreement between Airbus and the concerned airlines.

The development comes in the wake of Airbus suspending deliveries to debt-laden HNA-affiliated companies after there were payment delays. As per sources familiar with the matter at hand, the deliveries of more than a dozen aircraft have been affected by HNA-related funding shortages.

Incidentally, China Development Bank (CDB) is HNA’s biggest creditor.

HNA did not immediately respond to requests for comments.

China’s aviation-to-finance HNA Group has attracted deeper scrutiny for its $50 billion plus deals in recent years. The debt-laden group has become the largest shareholder in Germany’s biggest bank – Deutsche Bank.

Weighed down by heavy debt and China’s aggressive crackdown on dealmaking firms, HNA has been pushing ahead with a series of asset sales that have so far included real estate and stakes in hotel groups. It is still clinging on to its core airline business.

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