CDB Aviation Enters Into Inaugural Sustainability Linked Loan for $625 Million

Landmark Transaction Constitutes Industry’s First Major Sustainability-Linked Syndicated Term Loan Facility

CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (“CDB Leasing”), announced today that the lessor entered into its inaugural Sustainability Linked Loan (“SLL”) on December 1, 2023, anchored with a $625 million syndicated term loan facility.

“This innovative facility marks a landmark transaction for the aviation finance space,” underscored Jie Chen, CDB Aviation’s Chief Executive Officer. “We’re thrilled to have leveraged our comprehensive sustainability strategy, with a particular focus on the activities across the Environmental and Social aspects of our operations, to secure this first major sustainability-linked loan syndicated facility among aircraft lessors.”

The SLL parameters of the facility are contingent on the satisfaction of Sustainability Performance Targets (“SPTs”), based on the lessor’s three Key Performance Indicators (“KPIs”), including two strong Environmental and one Social KPIs related to:

• reducing the carbon intensity of the CDB Aviation’s fleet, focusing on the most fuel-efficient aircraft;
• increasing the share of new generation aircraft in the lessor’s fleet, pursuing its target to reach 60% of new generation aircraft (by number of aircraft) by the end of 2025; and
• increasing the level of Diversity, Equity, and Inclusion (“DEI”)-related training for the workforce.

Moody’s Investors provided the Second Party Opinion as to the appropriateness of the KPIs and SPTs, confirming the conformity of the facility with the Sustainability Linked Loan Principles (“SLLPs”), with a best-in-class SQS2 rating.

The facility was financed by a group of MLA banks, including: Crédit Agricole Corporate and Investment Bank, BNP Paribas, The Hongkong and Shanghai Banking Corporation Limited, Natixis Corporate & Investment Banking, China Minsheng Banking Corp., Ltd. Hong Kong Branch, China Guangfa Bank Co., Ltd. Shenzhen Branch and China Construction Bank Corporation London Branch.

Crédit Agricole Corporate and Investment Bank acted as Sole Sustainability Agent, as well as Lead Sustainability Structuring Advisor jointly with BNP Paribas and the Hong Kong and Shanghai Banking Corporation. Natixis acted as Sustainability Structuring Bank. Crédit Agricole Corporate and Investment Bank acted as Agent of the facility. Milbank LLP acted as counsel to the lessor, while Allen & Overy LLP (London) acted as counsel to the lenders. JunHe and Matheson acted as PRC and Irish counsel, respectively.

“Delivering on our platform’s ESG vision and responsibilities, this facility advances the sustainability of our business and enhances our ability to contribute to progress in reaching the industry’s net-zero target. We’re committed to being a leader on ESG matters and efforts, managing our impact as a business and maximizing our influence to help drive positive change in the aircraft leasing community,” concluded Chen.

Forward-Looking Statements

This press release contains certain forward-looking statements, beliefs or opinions, including with respect to CDB Aviation’s business, financial condition, results of operations or plans. CDB Aviation cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ”may,” “will,” “seek,” “continue,” “aim,” “anticipate,” “target,” “projected,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” “achieve” or other terminology or words of similar meaning. These statements are based on the current beliefs and expectations of CDB Aviation’s management and are subject to significant risks and uncertainties. Actual results and outcomes may differ materially from those expressed in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Except as required by applicable law, we do not undertake any obligation to, and will not, update any forward-looking statements, whether as a result of new information, future events or otherwise.

About CDB Aviation

CDB Aviation is a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (“CDB Leasing”) a 38-year-old Chinese leasing company that is backed mainly by the China Development Bank. CDB Aviation is rated Investment Grade by Moody’s (A2), S&P Global (A), and Fitch (A+). China Development Bank is under the direct jurisdiction of the State Council of China and is the world’s largest development finance institution. It is also the largest Chinese bank for foreign investment and financing cooperation, long-term lending and bond issuance, enjoying Chinese sovereign credit rating.

CDB Leasing is the only leasing arm of the China Development Bank and a leading company in China’s leasing industry that has been engaged in aircraft, infrastructure, ship, commercial vehicle and construction machinery leasing and enjoys a Chinese sovereign credit rating. It took an important step in July 2016 to globalize and marketize its business – listing on the Hong Kong Stock Exchange (HKEX STOCK CODE: 1606). www.CDBAviation.aero

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@CDBAviation has entered into its inaugural Sustainability Linked Loan, anchored with a $625 million syndicated term loan facility