China Development Bank Joins Bidding for Royal Bank of Scotland's Aircraft Leasing Business

Strategic Insights -

Beijing, China Development Bank (CDB) has joined two other companies, Wells Fargo and Sumitomo Mitsui Financial Group (SMFG), in bidding for the aircraft leasing business from Royal Bank of Scotland (RBS). RBS has been planning to sell its aircraft leasing operation, RBS Aviation Capital, which is the world's fifth-largest aircraft leasing company. The sale of this operation, valued at USD 7 billion, is a crucial step for RBS as it looks to shed non-core assets. The partnership with Bank of China Limited (BOC) is also expected to play a significant role in the launch of leasing business in China.

Key Takeaways:

  • China Development Bank, along with Wells Fargo and Sumitomo Mitsui Financial Group, is bidding for RBS's aircraft leasing business, valued at USD 7 billion.
  • RBS Aviation Capital, the aircraft leasing unit for sale, is the world's fifth-largest aircraft leasing company.
  • The sale of RBS Aviation Capital is a strategic move by RBS to shed non-core assets and focus on core banking operations.
  • Bank of China Limited is expected to partner with RBS to launch leasing business in China.
  • The partnership with BOC will see the launch of a new aircraft leasing service, building on BOC's existing aircraft leasing unit, which reported a net profit of USD 168 million in 2010.
  • The BOC aircraft leasing unit has a fleet of 166 aircraft, with 140 self-owned and 26 managed for third-party clients, and total assets of USD 6.6 billion at the end of 2010.

Statistics:

  • RBS Aviation Capital is valued at USD 7 billion.
  • The BOC aircraft leasing unit has a fleet of 166 aircraft.
  • 140 aircraft are self-owned, while 26 are managed for third-party clients.
  • Total assets of the BOC aircraft leasing unit topped USD 6.6 billion at the end of 2010.
  • The BOC aircraft leasing unit reported a net profit of USD 168 million in 2010, a 22% increase from the previous year.
  • RBS Aviation Capital is the world's fifth-largest aircraft leasing company.

Sources:

  • SinoCast Daily Business Beat via COMTEX.
  • Royal Bank of Scotland (RBS).
  • Bank of China Limited (BOC).
  • Sumitomo Mitsui Financial Group (SMFG).