Loan for Aircraft Procurement by Aviation Capital Group LLC, Aircraft Leasing Company under Auspices of Tokyo Century Corporation
Supporting Aircraft Leasing Business of Japanese Company
- Region: North America
- Marine and Aerospace
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on December 28 a loan agreement amounting to up to USD300 million (JBIC portion) with Aviation Capital Group LLC (ACG), a U.S. company under the auspices of Tokyo Century Corporation (Tokyo Century). The loan is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to USD600 million.
The loan is intended to provide the necessary funds for procuring aircraft for ACG to conduct its aircraft leasing business.
ACG is a U.S.-based leading aircraft leasing company whose portfolio consists of 476 aircraft, including those on order, as of the end of September, 2022. Tokyo Century plans to continue to focus on developing its aircraft leasing business as a field for which growth is forecast to continue, and for that purpose completed its acquisition of the entire interest in ACG in December 2019*1
. ACG aims to secure a competitive edge in the aircraft leasing industry and seize additional profit-earning opportunities by further expanding the number of aircraft it owns and manages, particularly fuel efficient next-generation aircraft. This loan will financially support this aspiration of ACG, thereby contributing toward maintaining and improving the international competitiveness of the Japanese aircraft leasing industry.
As Japan’s policy-based financial institution, JBIC will continue to financially support the overseas business expansion of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function, in collaboration with private financial institutions.
JBIC financed part of the necessary funds for Tokyo Century to acquire the entire interest in ACG in March 2020, and financed part of the necessary funds for ACG to conduct its aircraft leasing business in the United States in September 2020.