I. Introduction
ICBC which has provided long term and stable financial support to China aviation sector, keeps playing a major role in China Aircraft Financing market. ICBC has closed well over RMB 100 billion in aircraft financing as of today, amongst over 210aircraft loans and 50 guarantees to finance more than 300 aircrafts of different models. Now the financing balance is approximate 50 billion.

II. ICBC Advantages
1. Serve for China
Aviation has been an important service sector since ICBC was established. Airline companies and aircraft manufacturers are traditional and important customers. ICBC has close relationship with most of the China airlines and aircraft manufacturers from home and abroad over many years of cooperation.

2. Go International
ICBC is one of china's banks that involved very early in international aircraft financing and masters all kinds of new financing instruments available in international market.

3. Professional Service
ICBC professional team offers tailor-made structured financing product which uniquely address the needs of every aviation company.

III. Main Financing Products
1. Loan before Delivery
Airline Company buying aircraft may have to pay a certain amount of pre-payment to aircraft manufacturer as stated in the purchase contract. In this case, ICBC can offer loan or open letter of payment guarantee if the airline company can submit ICBC-recognized guarantee.　　

2. Aircraft Mortgage
If the aircraft has clear property right, no encumbrance, complete with all licenses and inspection certificates, fit for flight and can be insured, ICBC is able to offer mid-to-long term loans at a mortgage rate from 30% to 100% to airline company (the borrower) provided that the aircraft is mortgaged and filed with Registry and ICBC is the first beneficiary of the insurance.

3. Finance Lease
Aircraft Financing lease is a type of lease which the lessor is considered to be the legal aircraft owner, but the risk and benefit are actually transferred to Airline Company. A finance lease actually combines the two functions of capital financing and property financing. Once the aircraft is mortgaged, insured and lease interest transferred, ICBC can offer service to lessor for aircraft purchase either under overseas or domestic finance lease, or finance Airline Company to acquire new aircraft through structural finance.   

4. Operating Lease
Aircraft operating lease is a type of lease where the lessor is the aircraft owner, undertakes the risk and enjoy the benefit. The lessee pays the aircraft rental as stated in the lease, returns the aircraft or buys the aircraft at an agreed price at the end of the lease. Once the aircraft is mortgaged, insured and lease interest transferred, ICBC can offer financing service to aircraft leasing company (domestic/overseas) to acquire or refinance the leasing aircraft, or offer off-balance-sheet financing service to Airline Company through the operating lease.

5. Sales and Leaseback
Airline Company or aircraft leasing company, for accounting purposes or relief of tax burden, has an option to sell the aircraft it owned to the third party and lease back the aircraft from the latter. We can help Airline Company or aircraft leasing company to arrange the entire lease back together with financing service, if necessary. 　　

6. Aircraft under Export Credit
If Airline Company has the financial support from the export credit institution of the country where the purchased aircraft is manufactured, ICBC offers the following solutions depending on the situations:
(1) Forex-to-Loan
Once the mortgage and insurance benefits of aircraft are transferred, ICBC as the borrower obtains the export credit overseas, then lends to Airline Company to pay the aircraft.
(2) Commercial Loan
ICBC arranges financing to Airline Company for the remaining purchase amount not covered by the export credit.
(3) Export Credit
Provided that there are insurance and guarantee from the export credit institution of the aircraft manufacturing country, ICBC can offer loans to aircraft buyer or seller, or purchase seller's account receivables or bill receivables held (from buyer), with preferential interest rate. 
(4) Guarantee or Counter-Guarantee
As stated in the guarantee requirement from the lender of export credit, export credit institution of the aircraft manufacturing country, ICBC can offer guarantee service provided that the guaranteed person can provide counter-guarantee.

7. Leasing Guarantee and Counter-Guarantee
During the lease of the aircraft, if the lessor or lessee's lending bank casts doubt on the credibility of the Airline Company, ICBC can guarantee Airline Company to pay the lease when due by opening letter of guarantee, standby L/C or revolving L/C, or provide counter-guarantee to the creditor bank that has provided such guarantee to the Airline Company. 　

8. Financial Consultancy
With years of experience in Aircraft Financing together with all types of equity instrument, debt instrument, derivatives and other innovative products available in overseas and domestic markets, ICBC offers structural financing solutions to Airline Company in the process of aircraft acquiring and selling, report optimization or business restructuring aiming at adjusted financial structure, lowered financing cost and improved financial index.

9. Risk Management
ICBC can help Airline Company or aircraft leasing company to adjust their expected income structure and debt structure in order not to be so much affected by the fluctuations in overseas or domestic markets. ICBC deploys all kinds of financial instruments, derivatives and the portfolio in particular. In line with the operation and financial nature of the aviation sector and Airline Companies, currency and term of the future incoming cash and outgoing cash matches with each other to avoid the financial risks incurred by the economic changes in the domestic or overseas markets. Financing cost and risk aversion cost are controlled as much as possible to a range that is acceptable to the customers.

IV. Contact Us
Banking Department, ICBC Head Office
Tel: (010) 66107982/8284/7946/7186/6763
Fax: (010) 66108546
Email: aircraftfinance@icbc.com.cn