This article is based on an official press release from CDB Aviation.

CDB Aviation Secures $710 Million Sustainability-Linked Loan via Hong Kong Platform

DUBLIN, January 12, 2026, CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. (CDB Leasing), has announced the execution of a significant new financing agreement. The lessor has secured a $710 million unsecured term loan facility structured as a Sustainability Linked Loan (SLL). This transaction marks a strategic expansion of the company’s Strategy platform, utilizing its Hong Kong subsidiary as the borrower for an SLL for the first time.

According to the company’s announcement, the facility has a five-year tenor and was executed on December 19, 2025. The deal underscores the aviation industry’s growing reliance on “transition finance,” where capital is tied directly to Environmental, Social, and Governance (ESG) performance metrics.

Transaction Structure and Banking Partners

The $710 million facility is anchored by a consortium of major financial institutions. The loan introduces CDB Aviation Hong Kong Limited as the primary borrower, a move designed to diversify the lessor’s funding sources beyond its traditional Irish headquarters. The transaction was supported by several key banking partners:

• Mandated Lead Arrangers and Bookrunners: Bank of China (Hong Kong) Limited and Industrial and Commercial Bank of China (Asia) Limited.
• Sustainability Agent and Structuring Advisor: Crédit Agricole Corporate and Investment Bank.
• Additional Lenders: Bank of Communications (Hong Kong and Sydney Branches), China CITIC Bank International, Ping An Bank, and CTBC Bank.

Jie Chen, CEO of CDB Aviation, emphasized the importance of this structural shift in the company’s press statement:

“This term loan marks a major milestone for our platform, with our Hong Kong entity being appointed as the borrower for the very first time to enter into an SLL to raise substantial funds from the market.”

— Jie Chen, CEO of CDB Aviation

Sustainability Performance Targets (SPTs)

As a Sustainability Linked Loan, the interest rate on the $710 million facility is directly tied to CDB Aviation’s ability to meet specific Key Performance Indicators (KPIs). According to the release, the loan terms incentivize the lessor to achieve three primary goals:

1. Reducing Carbon Intensity: The company must demonstrate a reduction in the carbon intensity of its fleet, prioritizing the placement of the most fuel-efficient aircraft.
2. Fleet Modernization: A key metric involves increasing the proportion of new-generation aircraft within the fleet. Previous company reports have indicated a target to reach 60% new-generation aircraft by the 2025/2026 timeframe.
3. Workforce Development: On the social front, the loan requires an increase in Diversity, Equity, and Inclusion (DEI) related Training for the workforce.

Meeting these targets typically results in a lower cost of borrowing, aligning the company’s financial incentives with its environmental commitments.

Strategic Context and Market Position

This transaction represents the latest step in CDB Aviation’s aggressive adoption of sustainable finance. The company has established a track record of utilizing SLLs to fund its fleet transition:

• 2023: The lessor closed its inaugural $625 million syndicated SLL.
• 2024: The company secured a $700 million SLL collateralized by aircraft assets.
• 2026: The current $710 million unsecured facility reinforces the company’s investment-grade standing (Moody’s A2, S&P A, Fitch A+).

In the official release, CEO Jie Chen noted that the transaction reflects strong market support:

“Our continued success in attracting top-tier financiers reinforces our position as a premier global lessor… and showcases the market’s confidence in our long-term strategy.”

— Jie Chen, CEO of CDB Aviation

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AirPro News Analysis

We observe that the decision to utilize the Hong Kong entity as the borrower is not merely administrative; it is a strategic pivot to tap into deep Asian liquidity pools while maintaining a global footprint. By diversifying its borrowing entities, CDB Aviation mitigates geographic risk and broadens its access to capital.

Furthermore, the inclusion of a “Social” KPI regarding DEI training, alongside standard environmental metrics, signals a maturing of the SLL market in aviation. Lenders are increasingly looking for holistic ESG strategies rather than purely carbon-focused metrics. As the industry faces pressure to decarbonize, we expect investment-grade lessors to continue leveraging their balance sheets to secure favorable terms through similar transition finance instruments.

Sources

• CDB Aviation Press Release (via Business Wire/Yahoo Finance)