China Development Bank orders 80 Airbus A320neo jets

China Development Bank Financial Leasing has announced that it will acquire 80 Airbus A320neo aircraft, with deliveries scheduled for between 2030 and 2032.

This substantial order aims to optimise the fleet structure of the bank's aviation unit and enhance the proportion of next-generation aircraft, which are known for their high fuel efficiency and broad market appeal, according to a statement released to the Hong Kong stock exchange. Deliveries are anticipated to occur between 2030 and 2032.

At the beginning of August, China Development Bank (CDB Aviation) secured a landmark US$700 million facility agreement, backed by a diverse portfolio of Airbus and Boeing narrow-body and wide-body aircraft currently on lease to various airline customers.

The financing is provided by a consortium of leading MLA banks, including Natixis, CACIB, BNP Paribas, the Korean Development Bank, Hongkong and Shanghai Banking Corporation Limited, Bank of China (Hong Kong), Bank of Communications Hong Kong Branch, Bank of Communications (acting through its offshore banking unit), CaixaBank, and Oversea-Chinese Banking Corporation.

This seven-year facility is structured as a sustainability-linked loan (SLL), marking the first instance of such an SLL-based aircraft portfolio financing executed by an aircraft lessor globally. The facility's innovative structure aligns with the Sustainability Linked Loan Principles (SLLPs), and Moody's Investors has awarded it a best-in-class SQS2 rating, underscoring its commitment to sustainability.