Bohai Leasing (000415.SZ)'s subsidiary Avolon plans to carry out the after-sales leaseback business of 10 A320NEO series aircraft.

Bohai Leasing (000415.SZ) announced that, in order to seize the opportunity in the aircraft sale-leaseback market, and to strategically position themselves for the long term to enhance their competitiveness in the global aircraft leasing market, their controlling subsidiary Avolon Holdings Limited (hereinafter referred to as "Avolon") signed agreements on December 26, 2024 with Avianca Group International Limited and its subsidiary Aerovas del Continente Americano S.A. Avianca (hereinafter referred to as "Avianca") and related parties to carry out sale-leaseback transactions for 10 A320NEO series aircraft. Avolon's wholly-owned subsidiary, Avolon Finance Ireland Limited (hereinafter referred to as "Avolon Finance"), acquired the rights from Avianca to purchase 10 A320NEO aircraft from Airbus SAS (hereinafter referred to as "Airbus") for a catalog price of approximately $1.106 billion USD (equivalent to approximately 7.9533566 billion RMB at a USD to RMB exchange rate of 1:7.1911). The actual purchase price was to be determined through negotiations between the two parties, not exceeding 30% of the company's most recently audited net assets. Furthermore, Avolon Finance, as the principal, entrusted UMB Bank, N.A. (hereinafter referred to as "UMB Bank") to lease the 10 aircraft to Avianca after the purchase. UMB Bank acts as the nominal owner and lessor of the aircraft assets, with all ownership rights of the aircraft assets belonging to the principal Avolon Finance, making Avolon Finance the actual owner of the aircraft assets. The aircraft are expected to be delivered from the fourth quarter of 2025 to the first quarter of 2027, with an initial lease term of 12 years. The rental level is based on market rates for similar aircraft during the same period, and rental payments will begin once the aircraft are officially delivered and leased.