Posted on: 03 March 2011 by Ross McSweeny
Bombardier Aerospace has signed a memorandum of understanding (MoU) with ICBC Financial Leasing Company, a leading leasing company in China with one of the world’s largest banks, Industrial Commercial Bank of China (ICBC), as its major shareholder, to provide Bombardier’s customers with advance payment financing, delivery financing and leasing solutions for commercial and business aircraft.
The capital available from ICBC Leasing totals up to $8 billion, 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 optimised aircraft solutions to operators in China and elsewhere," explained Guy Hachey, president and chief operating officer, Bombardier Aerospace. "We look forward to a long-lasting, fruitful co-operation 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," added Mairead Lavery, vice-president, strategy, business development and structured finance, Bombardier Aerospace.
"[This] marks the beginning of an important new business relationship between Bombardier and ICBC Leasing," noted Cong Lin, president, ICBC Leasing. "The MoU provides a framework to support the development of the global air transportation network."