The US’s Export-Import bank (US Ex-Im) is hoping to resume its diminished aircraft financing business with China with a new trade agreement with China’s ICBC Financial Leasing Co.
"We think ICBC can help foster US Ex-Im’s return to the aviation financing market in China."
Between 1992 and 2001, the US bank supported more than US$6bn in aircraft financing to 15 different airlines in China.
However, no aircraft have been financed since then.
Furthermore, the US bank has never financed a sale of business aircraft or helicopters into China.
“We think ICBC can help foster US Ex-Im’s return to the aviation financing market in China, and we can assist ICBC as it broadens its business focus beyond China and to airlines and companies around the world,” says Fred Hochberg, president and chairman of US Ex-Im.
Li Xiaopeng, chairman of ICBC, says: “The cooperation between the two institutions can promote the economic development of the US and China and help in balancing the trade of our two countries; definitely an important breakthrough mutually.”
“This agreement reflects our commitment to build a strong relationship with ICBC Leasing, enabling us to better pursue our common goals and objectives,” Hochberg continues.
US Ex-Im currently has a portfolio of around 875 large commercial aircraft with an aggregate amount of outstanding guarantees and loans totalling about US$35bn.
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