The only way is up

The cross border lease market into China took another step forward in August with the signing of the country's first ever Like-Kind Exchange (LKE) transaction. Foreign investors continue to be wary about Chinese credits and international finance houses are looking to the domestic leasing sector...

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Bibliographic Details
Published in:Asset Finance International 2003-09, p.1
Format: Article
Language:English
Subjects:
Aircraft
Airline industry
Airlines
Cross border transactions
Extraterritoriality
International finance
Leases
Leasing
Legal counsel
Lessors
Like kind exchange
Manycompanies
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Summary:The cross border lease market into China took another step forward in August with the signing of the country's first ever Like-Kind Exchange (LKE) transaction. Foreign investors continue to be wary about Chinese credits and international finance houses are looking to the domestic leasing sector as much as to cross border deals for business development. The LKE deal, which closed on August 1 and which is valued at roughly $140 million, involved the lease of a used 747-400 Freighter to China Southern Airlines and was arranged by Bank of America Leasing & Capital Group. What has particularly excited those involved in this most recent cross border lease for a Chinese credit is that a special conditional sale structure was employed (another first for China), designed and utilized to enable the airline to retain the title to the aircraft. The structure is also advantageous for many other types of big ticket equipment user in China, says one source. The LKE lease continues a fruitful relationship between the US bank and the Chinese carrier, developed over the last few years.
ISSN:1367-8086