New | China Aircraft Leasing in talks with Boeing over new purchases, shares surge
China Aircraft Leasing (CALC) is discussing with Boeing the idea of buying new aircraft after the company signed a memorandum of understanding with Airbus to purchase 100 planes last week, the Hong Kong Economic Journal reported.
The report quoted Yu Tai-tei, chief financial officer of CALC, as saying that there would be no need for the company to issue new shares to finance the purchase of the planes from Airbus.
The value of the 100 planes from Airbus is approximately US$10.2 billion (HK$79.56 billion), according to the company’s filing to the Hong Kong stock exchange on Thursday. But CALC’s cash on hand had been reduced by 83 per cent to HK$230 million at the end of June.
After an early slide to its session low of HK$9.80, shares of CALC hit a 52-week high of HK$10.84 on Friday, which is about 8 per cent higher than Thursday’s close.
Yu added that the company would need to pay 20 per cent of the order value as deposit in the short term in different batches, and it had signed a 10 billion yuan credit facility agreement with the Export-Import Bank of China. He said the number of aircraft in the company’s fleet would reach 44 by the end of this year, and grow to 100 by the end of 2016.
