Bank of China offers Lufthansa plane financing service

Bank of China<601988><3988>, the second-largest bank in the country, has signed an agreement to provide Deutsche Lufthansa AG more than US$154 million in lease financing for two Airbus A330 aircraft under Japanese Operation Lease (JOL) mode , according to a statement released by the lender's wholly-owned aircraft leasing arm BOC Aviation yesterday.

The two aircrafts have already been delivered, the statement said. BOC Aviation will serve as the debt arranger for the EUR-denominated facilities, which are for a 12-year term.

The deal marks the first time for a Chinese lender to provide airplane financing service for the German carrier.

Headquartered in Singapore, BOC Aviation engages in commercial aircraft sales and leasing. It currently owns 72 aircraft mainly from the Airbus A320 family and Boeing 737 series.