SPDB Financial Leasing to finance Bombardier customers
China’s Shanghai Pudong Development Bank Financial Leasing (SPDBFL) has signed a memorandum of understanding with Bombardier that could see the Chinese bank provide financing for the Canadian manufacturers clients.
The $500 million fund will be available to both commercial and business aircraft customers, and covers advance payment financing, delivery financing and leasing solutions.
Bombardier will be hoping that the fund will help to attract further customers within China.
“SPDBFL and Bombardier are equally focused on offering tailored aircraft solutions to meet the needs of airlines and other customers,” Xiang Yu, CEO of SPDBFL. “While this memorandum will be beneficial to both parties, it also provides a framework to advance China’s finance and legal infrastructure to further improve aviation financing in the country.”
SPDBFL was set up in April 2012 as a joint venture between Shanghai Pudong Development Bank Co. Ltd, The Commercial Aircraft Corporation of China, Ltd (COMAC), Shanghai International Group (SIG) and Shanghai Long Hua International Aviation Investment Co. Ltd (SHLHI), and currently has a registered capital base of 2.95 billion yuan.
“With China being one of Bombardier’s key growth markets, this MOU places us in a stronger competitive position to recommend financing and leasing solutions for potential customers in the country, and is another positive step in reinforcing our domestic presence,” said Marc Meloche, head of structured finance at Bombardier Commercial Aircraft. “We are very pleased with the sales momentum we have been gaining in China recently.”