Financing Acquisition of Overseas Aircraft Leasing Businesses by Japanese Companies Supporting overseas M&A by Japanese Companies
International Business Development NR/2012-19
June 22, 2012
June 22, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today loan agreements for funding acquisition of equity shares with Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL), and Sumitomo Corporation (SC), respectively. This amount, required for the joint efforts of SMFL, SMBC and SC (hereinafter the "Three Japanese Companies"), is part of the total 7.3 billion U.S. dollars necessary for the acquisition of the aircraft leasing businesses under the Royal Bank of Scotland (RBS), a leading British bank .
- Each loan is provided in cofinancing with SMBC. The loan extended to SMFL totals 413 million U.S. dollars which brings its overall cofinancing amount to 783 million U.S. dollars. The loan extended to SC totals 78 million U.S. dollars which brings its overall cofinancing amount to 131 million U.S. dollars. In addition to these loans, JBIC signed on June 7 a loan agreement totaling 3 billion U.S. dollars (JBIC portion)*1 with RBS Aerospace Limited (currently SMBC Aviation Capital Limited)*2 in the Republic of Ireland in cofinancing with SMBC. Thus, to support this joint acquisition by the Three Japanese Companies, JBIC signed loan agreements in the overall amount of 3,491 million U.S. dollars.
- JBIC will continue to support overseas M&A activities of Japanese companies by drawing on its various financial facilities and schemes.
- *1 See Press Release on June 7, 2012.
- *2 Its name was changed from RBS Aerospace Limited (RBSAI) on June 8, 2012.