CDB Aviation, a leading global aircraft leasing platform and wholly owned subsidiary of China Development Bank Financial Leasing Co., Ltd. (CDB Leasing), has achieved a significant milestone in sustainable financing. On December 19, 2025, CDB Aviation Hong Kong (Limited) successfully executed a $710 million Sustainability-Linked Loan (SLL), a five-year unsecured term facility aimed at advancing the company’s green fleet strategy. This marks the first time the Hong Kong entity has entered the market as a borrower for such a substantial sustainability-linked transaction.
Strategic Financing for a Sustainable Future
The new SLL facility underscores CDB Aviation’s commitment to sustainable aviation finance and positions the company as a trailblazer among global aircraft lessors. Jie Chen, CEO of CDB Aviation, noted, “This term loan marks a major milestone for our platform and demonstrates the market’s confidence in our long-term strategy. It also strengthens our cost of capital while supporting sustainable profitability.”
The financing structure was supported by an international consortium of banks: Bank of China (Hong Kong) Limited served as Facility Agent and Facility Coordinator, while Bank of China (Hong Kong) Limited and Industrial and Commercial Bank of China (Asia) Limited acted as Mandate Lead Arranger Bookrunners. Credit Agricole played a central role as Sole Sustainability Agent and Lead Sustainability Structuring Advisor, with additional structuring support from Bank of China (Hong Kong), ICBC London Branch, and China CITIC Bank International Limited.
The SLL was financed by a diverse group of Mandated Lead Arranger (MLA) banks, including Bank of China (Hong Kong) Limited, Industrial and Commercial Bank of China (Asia) Limited, Bank of Communications (Hong Kong), China CITIC Bank International Limited, Ping An Bank, and CTBC Bank Co., Ltd., among others.
Linking Growth to Sustainability Performance
A defining feature of this sustainability-linked facility is its Sustainability Performance Targets (SPTs). The loan parameters are directly tied to CDB Aviation’s Key Performance Indicators (KPIs), emphasizing measurable environmental outcomes. The SPTs focus on:
- Reducing carbon intensity across the fleet, prioritizing the most fuel-efficient aircraft.
- Increasing the proportion of new-generation aircraft, ensuring a greener, more sustainable fleet.
This innovative financing approach incentivizes tangible environmental improvements while aligning the company’s financial strategy with global ESG (Environmental, Social, and Governance) standards.
Market Confidence in a Premier Global Lessor
CDB Aviation’s ability to attract top-tier financial institutions highlights its strong credit profile, ranking among the top 10 global lessors. The success of this SLL transaction reinforces investor confidence in the company’s long-term sustainability strategy and strategic growth trajectory.
As the aviation sector continues to evolve, sustainable financing solutions like this SLL are poised to become critical drivers for industry-wide decarbonization. By linking capital costs to environmental performance, CDB Aviation not only strengthens its financial position but also accelerates the adoption of eco-friendly aircraft solutions worldwide.
Driving Forward with Sustainable Aviation
CDB Aviation’s $710 million Sustainability-Linked Loan represents more than a financing milestone—it is a strategic commitment to a greener aviation industry. With a focus on measurable environmental outcomes and fleet modernization, the company sets a benchmark for sustainable growth and responsible investment in aviation.
About CDB Aviation
CDB Aviation is a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (“CDB Leasing”), a 41-year-old Chinese leasing company that is backed mainly by the China Development Bank. CDB Aviation is rated Investment Grade by Moody’s (A2), S&P Global (A), and Fitch (A+). China Development Bank is under the direct jurisdiction of the State Council of China and is one of the world’s largest development finance institutions. It is also the largest Chinese bank for foreign investment and financing cooperation, long-term lending and bond issuance, enjoying Chinese sovereign credit rating.
CDB Leasing is the only leasing arm of the China Development Bank and a leading company in China’s leasing industry that has been engaged in aircraft, infrastructure, ship, commercial vehicle and construction machinery leasing and enjoys a Chinese sovereign credit rating. It took an important step in July 2016 to globalize and marketize its business – listing on the Hong Kong Stock Exchange (HKEX STOCK CODE: 1606). www.CDBAviation.aero
