China Huirong Financial (HKG:1290) formed two joint ventures with Inno One Group to acquire and lease an Airbus A320 aircraft, according to a filing with the Hong Kong Stock Exchange.
China Huirong's subsidiaries will hold 49% stakes in both the Hong Kong and mainland China joint ventures, with Inno One holding the remaining 51% in each.
The group's total consideration and guarantee commitment will amount to about 68.1 million yuan.
The mainland JV will acquire the aircraft through a finance lease with an onshore Chinese financial institution and lease it to the Hong Kong JV, which will then sublease the aircraft to a lessee under an operating lease.