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AIRCRAFT LEASING SHIP LEASING Infrastructure Leasing INCLUSIVE FINANCE OTHER LEASING

CDB Leasing boasts globally leading aircraft leasing business, mainly including purchase, leasing, management and selling of commercial aircrafts, and most of the leasing transactions are operating leasing. It is one of the largest global airplane lessors in China in terms of net book value.

Source of aircrafts

It has a variety of airplane sources, including:

Directly ordering new planes from global major aircraft makers (e.g. Airbus and Boeing);

Leasing back to airlines planes that are bought from them;

Acquiring planes or asset portfolios from other lessors (e.g. peers, financial institutions, brokerage agencies).

The fleet of airplanes owned by the Company is characterized by a reasonable combination of models and young ages, and those for sale are the new-generation narrow-body model that is highly marketable. Moreover, the Company has been spared no efforts to support the development of China’s civil aviation manufacturing for years. It is one of the initial users of China’s civil regional passenger airliner ARJ21 and the large-scale passenger jet C919.

Service mode

Clients

Most planes of the fleet are leased on a long-term basis to 72 airline companies for operating purposes from 37 countries and regions including China and Asia-Pacific Region (except for China), Europe, Africa and Americas. Domestic clients include Air China, China Southern Airlines, China Eastern Airlines, etc., while overseas customers are big airlines from many countries including flag carriers such as Qatar Airways and Air France-KLM Group as well as low-cost airlines leading local markets such as India’s IndiGo and Malaysia’s Air Asia.

Service advantages

The fleet

The Company owns a fleet of airplanes that are well received on the market and orders for the new-generation planes to satisfy customer needs. As of June 30, 2022, it had 384 airplanes, including 272 proprietary ones and 112 ones that have been ordered by clients.

The platform

The Company has in place international aircraft leasing business platforms dedicated to Shenzhen Qianhai Bay Free Trade Port Zone, China (Tianjin) Pilot Free Trade Zone, China (Shanghai) Pilot Free Trade Zone, China (Fujian Xiamen) Pilot Free Trade Zone, Ireland, Hong Kong and Cayman Islands. These platforms can better satisfy customer needs, support the globalized development of the business and enhance the Company’s competitiveness on the aircraft leasing market.

Financing

The Company boasts a diversity of financing channels and independent ratings and quasi-sovereign credit ratings assigned by Fitch, Moody’s and Standard & Poor’s—the world’s three biggest rating agencies.

IT system-based management

The Company has been stepping up efforts in developing and using the aviation leasing information management system for greater effectiveness and efficiency of managing airplane assets, thus improving the responsiveness and quality of customer services.

Contact information

+852 3699 0600

The Company has started the ship leasing business since 2008 and is one of the earliest lessors engaged in ship leasing in China. The ship leasing division conducts the business throughout the world, mainly engaged in leasing of mainstream ship types that are characterized by energy conservation, environmental friendliness and high technology contents, supplemented with leasing of containers, container tanks, shipyards, port logistic facilities and equipment. As of June 30, 2022, the Company owns 259 ships, of which 220 are in operation and 39 are under construction.

Service mode

Financing leasing

The Company boasts a mature professional team with rich experience in the industry and offers customers the following ship leasing solutions:

Financing leasing:Ships for financing leasing are mainly bulk carriers, oil tankers, container ships, chemical ships, LNG ships, luxury cruises and so on.

Direct leasing:The Company orders a new ship from a shipyard or buys a secondhand one from the market at the request of a client and leases it on a long-term basis to the client. In this way, the client can access, use and finally own a ship with much less money. During the lease term, the ownership of the leased ship is registered under the name of the Company; upon maturity of the lease term, the client is obligated to buy back the leased ship at the predetermined price.

Leasing back:The Company offers clients with financing supports through buying ships from them and then leasing the same back to them, which can reactivate their stock assets. During the lease term, the ownership of the leased ship is registered under the name of the Company; upon maturity of the lease term, the client is obligated to buy back the leased ship at the predetermined price.

Operating Leasing

Ships for operating leasing are mainly mainstream general-purpose bulk carriers, product tankers and LNG carriers that are energy-saving, environment-friendly, technologically advanced, compliant with international standards and value-preserving on the global market.

The Company places orders with shipbuilders for making new ships or purchases ships from the secondhand market in due course based on research and judgment of market demands and development trends of the industry, and then lets the ships out to clients to meet their needs for shipping capacity.

The Company offers operating leasing in two modes: bare boat charter and time charter. In the former mode, the Company only lets out ships, while in the latter it also offers ship management services in addition to leasing the boat.

Individualized leasing

Apart from financing leasing and operating leasing, the Company also offers individualized leasing products tailored to customer needs such as subleasing, joint leasing or structured leasing.

Target clients

Target clients include domestic large central enterprise groups, local state-owned enterprises and large private enterprises, domestic and foreign large grain merchants, miners and trade companies, domestic and foreign steel manufacturers, oil and gas companies, world-class ship owners, ship operators and leading enterprises in ship type segments.

Service advantages

Professionalism

The professional team develops professional products and delivers professional services ranging from supervision over shipbuilding to ship management, from ship financing to ship operation to satisfy customer needs in an all-round manner.

Low cost

Relying on the comprehensive strength of its own and its parent bank, CDB (Leading) has been granted the highest credit ratings by the three biggest international rating agencies (Standard & Poor’s, Fitch and Moody’s) among the domestic leasing peers. As a result, the ship leasing business denominated in US dollars brings in highly cost-competitive funds. The Company hopes to work together with global quality clients towards mutual development.

Cases

01

CBD (Leasing) cooperated with the global leading shipper Maersk Tankers in an operating financing project involving 14 MR product tankers. The project has been selected as the best ship leasing deal of the year by Marine Money.

02

The Company carried out a financing leasing project involving two 24000TEU container ships in cooperation with a top-notch liner company MSC Mediterranean Shipping Company S.A., placing an order with a domestic shipyard for building a new-generation ultra-large container ship with the largest load capacity in the world. The project is reflective of the Company’s efforts in helping Chinese shipbuilders undertake high-end shipbuilding orders by tapping into the advantages of its leasing products.

03

The Company worked with COFCO International Freight S.A. under COFCO Corporation in an operating leasing project of two 85000-ton bulk carriers, for whose construction an order has been placed by the Company to Chengxi Shipyard under CSSC (China State Shipbuilding Corporation Limited). The project featuring cooperation of three powerful parties is a model of industry-financing integration for boosting China’s real economy.

Contact information

021-5388 1198

Based on the new development stage, the Company adopts new development ideas, and actively responds to state policy by focusing on supporting the development of the country’s key strategic regions, green finance and advanced manufacturing and implementing the development requirements for innovation-driven and coordinated development. With a focus on key clients, the Company has intensified market research and analysis to dig for business development opportunities, and committed itself to offering financing solutions to projects that are systemically important to national and local economies, thus securing an extensive customer base. As of June 30, 2022, the client base of the Company’s leasing services for 30 provinces, autonomous regions and municipalities directly under central government control across China.

1. The Company has aligned its development strategy with China’s pledge to peak carbon dioxide emissions by 2030 and achieve carbon neutralization by 2060 and aggressively grown its green leasing business. It has consistently worked to strengthen its position in the centralized electricity generation sector, expand its share in the market of distributed energy systems for industrial and commercial businesses, and boost the efficiency of its green leasing projects. 

2. The Company has deployed its resources to support the coordinated development of seven strategic urban agglomerations, including the Yangtze River Economic Belt, the Guangdong-Hong Kong-Macao Greater Bay Area, the Beijing-Tianjin-Hebei Region, and the Yangtze River Delta.

3. The Company has made great efforts to foster innovation in its business and drive the upgrading of the manufacturing industry. It has focused on its main businesses, increased investment in new infrastructure and new niche, manufacturing industries such as integrated circuits, IDC, and shield tunnel boring machine, and continuously enhanced its capability to support the upgrading of key industries.

Competitive advantages

1

A sale and lease back arrangement enables clients to free up capital tied up in their fixed assets.

2

Our purchase of the leased property needed by customers can greatly relieve their pressure of large capital input in a lump sum.

3

Customers only need to pay rentals on installment, which is beneficial for improving their asset and liability structure. Moreover, we can issue VAT (value-added tax) invoice for rentals paid under direct leases upon request, and the tax deduction will lower customers’ financing costs.

4

To ensure clients have easy access to the extensive range of leasing services offered by us, the Company has put in place a streamlined credit approval process and set up “green channels” for VIP clients and important projects.

Contact information

0755-2398 0900

CDB (Leasing) is one of the first financial leasing companies in China that offers customized financing leasing schemes to commercial vehicle and engineering machinery manufacturers and dealers, and a main participant in China’s vehicle and engineering machinery leasing market.

In active response to the Party Central Committee’s and the State Council’s calling for “vigorously developing inclusive finance and enhancing the capability of inclusive finance services”, the Company taps into its advantages in financing and property financing to serve the real economy and support small and micro-enterprises. The Company has embraced innovation, accelerated the digitalization of its business, and ventured into the passenger car retail market. The leased objects cover a wide range of commercial vehicles, passenger vehicles and engineering machinery, and end customers include large-scale engineering enterprises, city public transport companies, leasing companies as well as medium, small and micro-enterprises and natural persons across the whole country.

Service mode

Credit extension to manufacturers and dealers

The Company grants credit limits on leasing to a cooperative manufacturer or dealer, and offers financial leasing services within the limits to end customers recommended by the manufacturer or dealer.

Leasing back sold asset packages

The Company extends credit limits to leasing companies affiliated to manufacturers and other third-party companies specializing in leasing of commercial vehicles, passenger vehicles and engineering machinery according to their creditworthiness and the quality of their underlying assets. The credit can be used to purchase assets from these financing leasing companies and then let the assets back to them.

Credit extension to large single clients

The Company grants credit limits on leasing business to large-scale construction enterprises, large mining groups, large logistic groups and city public transport groups according to their funding needs for development and credit conditions. The Company purchases vehicles or engineering machinery from suppliers designated by the customer within the credit limits and then rents the property to the customer for use.

Financial products

Under the mode of credit extension to manufacturers and dealers, the Company has designed and introduced “Zu Lin Tong” and “Zu Lin Bao” for the commercial vehicle industry and the construction machinery industry, respectively. The products enable convenient deduction of rentals through bank-enterprise cooperation, realize efficient and stable batch management based on rich industry experience, and offer quality and reliable financing services supplemented by professional asset management services and auxiliary products to medium, small and micro-enterprises and natural persons.

Clients

The Company offers financial services for medium, small and micro-enterprises and natural persons across the country, maintains business relations with leasing peers through cooperation with vehicle and engineering machinery manufacturers and dealers, and helps the aforesaid clients solve difficult access to funding, tiresome procedures and high financing costs.

Cooperative clients include domestic top large-scale manufacturers, domestic leading medium and small-sized manufacturers, domestic leasing companies and city public transport companies.

Service advantages

Innovative financial leasing products

After close to 10 years of efforts and development in the commercial vehicle and engineering machinery markets, the Company has introduced the financial leasing products “Zu Lin Tong” and “Zu Lin Bao”, which were well received by the market and characterized by effective risk control, mature product modes, high adaptability to the market and a wide scope of applicability. The products basically cover main manufacturers and dealers of vehicles and engineering machinery purchased by end customers, and boast prominent competitive advantages over their counterparts.

Sound business relations with upstream and downstream customers

The Company has established long-term cooperative relationships with China’s main vehicle and engineering machinery manufacturers. Funds provided by the Company are of positive significance to the development of the upstream industry as the money enables the manufacturers to input more resources into product R&D and other important business fields.

Service Case

Starting from 2011, CDB Leasing has been in business cooperation in leasing of engineering machinery with a domestic top machinery manufacturer by offering it supporting financing for the selling of construction machinery made by it and by providing leasing services for medium, small and micro-enterprises and natural persons. As of the end of 2021, total loans extended to the project had exceeded RMB60 billion with a balance of assets worth over RMB10 billion, cumulatively supporting the leasing of over 80,000 sets of equipment to more than 20,000 medium, small and micro-enterprises and natural persons. The project is a typical case of CDB Leasing’s supporting an engineering machinery manufacturer by accelerating its capital velocity. It is of great importance to boosting the development of the domestic industry including engineering machinery manufacturing.

Contact information

Inclusive finance: 0755-2398 0999

Passenger vehicle leasing: 400-670-1606

In addition to its main business activities, the Company has actively looked for new growth engines for its business, bolstered its value chain and supply chain, and enhanced its capability to serve the real economy. It has also forayed into high-end equipment manufacturing, integrated circuits, smart cities and other industries.

Contact information

0755-2398 0999