The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 28 a loan agreement amounting to up to USD320 million (JBIC portion) with Engine Lease Finance Corporation (ELF), an Ireland-based U.S. company that is under the auspices of Mitsubishi HC Capital Inc. (Mitsubishi HC Capital). The loan is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to USD650 million.
The loan is intended to provide the funds necessary for ELF to procure spare engines for aircraft maintenance to conduct its aircraft engine leasing business.
ELF is a leading aircraft engine leasing company. Mitsubishi HC Capital positions this business as a field to focus and which is forecast to continue growing. ELF aims to secure a competitive edge in the aircraft engine leasing industry by further expanding the number of engines it owns and manages by replacing existing engines with new types of engines that have better fuel efficiency. This loan will financially support this aspiration, thereby contributing toward maintaining and improving the international competitiveness of the Japanese aircraft engine 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.
