China Bank Provides $8B Financing for Bombardier Jets
Bombardier Aerospace late last week signed a memorandum of understanding (MOU) with ICBC Financial Leasing, a wholly owned subsidiary of Industrial and Commercial Bank of China, to provide up to $8 billion in financing for Learjet, Challenger and Global business jets, as well as for the Canadian manufacturer’s airliners. The agreement allows ICBC Leasing to provide Bombardier customers with advance payment financing, delivery financing and leasing solutions. The MOU also covers financing for maintenance, service and production at Bombardier Aerospace’s current and potential future subsidiaries and affiliates. It also allows ICBC Leasing to provide Bombardier 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 Bombardier Aerospace president and COO Guy Hachey. “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, Bombardier Aerospace vice president of strategy, business development and structured finance.