The Henan branch of China Development Bank (“CDB”), advised by King & Wood Mallesons, provided financing to a joint venture leasing company in Henan province (as the owner and lessor, the "borrower"), to help the company lease several aircraft to a Russian airlines (the “lessee”). On 28 April, 2017, the first three new Airbus A320-214 aircraft were successfully delivered respectively at the Airbus Blagnac Delivery Center, France and Hamburg Delivery Center, Germany. The transaction marked the first aircraft financing project for a financial institution in Henan province, a breakthrough in the aircraft leasing industry of the province, and a substantial step of Henan’s finance leasing industry to the market. It was also the first aircraft financing project undertaken by CDB’s Henan branch.

CDB is a policy bank directly under China’s State Council. The cooperation among the CDB Henan branch, the borrower and the lessee has filled a gap in the financial capital market of Henan province, marking a historic step toward the integration of the aviation and financial industries in Henan province. The project was also an important part of CDB’s effort to support the Russian aviation industry and local leasing companies "going global", promote the "Belt and Road" infrastructure initiative and deepen regional economic cooperation.

In the project, KWM acted as PRC counsel for the CDB Henan branch, and as lead counsel coordinating lawyers in the United Kingdom, Ireland, Russia, New York and Bermuda. The team worked closely with the client and foreign counsel to provide the client with a full range of legal services. In particular, in the delivery of the first three aircraft, KWM successfully coordinated the signing of all financing documents within one week, the confirmation of withdrawal conditions and the completion of three deliveries at the two centers on the same day, winning the client’s high praises for their ultra-efficient work.

The project was led by partner Ma Feng, supported by Chen Jie, Huang Qianqian and He Xiao from the Beijing office and Tejaswi Nimmagadda (of-counsel) and Yinny Liu from the Hong Kong office.

Ma Feng commented, “We are pleased to assist China Development Bank’s Henan branch completing this significant pioneering project. KWM was one of the earliest law firms in China to practice aircraft financing. As the domestic aircraft leasing market continues to grow, we will combine our rich experience accumulated in this area with the market-leading innovative ideas to help clients explore domestic and international market opportunities and achieve higher goals.”