PRZOOM - /newswire/ -
São José dos Campos, Brazil, 2012/04/23 - Embraer and China’s ICBC Financial Leasing Co., Ltd (ICBC Leasing) today signed a Memorandum of Understanding (MoU) on aircraft financing and leasing - Embraer.com. NYSE: ERJ; Bovespa: EMBR3
The agreement creates financing opportunities for the sale of Embraer’s commercial and executive jets in China and other markets. Under the MoU, total program support could amount to as much as USD 2.5 billion over the next five years.
ICBC Leasing started doing business in 2007 as a wholly owned subsidiary of Industrial and Commercial Bank of China, the world largest bank by market capitalization. The leasing company has over 70 jets in its aircraft fleet portfolio.
“The rapid development of the Chinese economy has resulted in high growth rates for regional and executive aviation, making it one of the greatest potential markets in the world. Embraer forecasts a demand of 430 commercial jets up to 120-seat and 635 executive jets in China during the next ten years,” said Paulo Cesar Silva, President, Embraer Commercial Aviation. “The cooperation with ICBC Leasing reinforces the recognition from Chinese leasing companies of Embraer’s leading presence in the regional aviation and growing strength in executive aviation. We are honored to be a partner of ICBC Leasing, an important player in the market.”
“ICBC Leasing commits itself to be the world leading financial leasing institute via diversified business development, including aviation. The strategic alliance with Embraer indicates one important breakthrough in the company’s aviation business segment, which also demonstrates our efforts to contribute to the development of China’s regional and executive aviation. Through integration of financing leasing services with industries entities and taking advantages of the strength of each party, we look forward to win-win collaboration,” said Cong Lin, CEO of ICBC Leasing.
Since its entry into China market in 2000, Embraer (embraer.com) has received 153 firm orders, including commercial and executive jets, from Chinese customers, with more than 110 aircraft delivered and in service. The Company accounts for around 76% of China’s market of commercial jets, up to 120-seat.
About ICBC Financial Leasing Co., Ltd
Founded in 2007 with a registered capital of USD 1.27 billion (RMB 8 billion), ICBC Financial Leasing Co., Ltd. is a wholly owned subsidiary of the Industrial and Commercial Bank of China, with its business covering aviation, shipping, large equipment and etc. ICBC Leasing is now the largest financial leasing institute in China having its total assets over USD 15.87 billion (RMB 100 billion). The company is the first institute approved by China Banking Regulatory Commission to have its business focusing on financial leasing within the banking system. It is also the first one to initiate aircraft leasing structure in bonded zone in China. To date, it has over 70 jets in its portfolio which is planned to be expanded to 250 jets by 2014.
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