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The Japan Bank for International Cooperation (JBIC; Governor: AMAKAWA Kazuhiko) signed on June 23 a loan agreement amounting to up to USD170 million and EUR40 million (JBIC portions), with SMFL Helicopters Limited (SMFLH), an Irish subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL). The loan is co-financed with The Norinchukin Bank, Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, and MUFG Bank, Ltd., bringing the total co-financing amount to an aggregate of approximately USD302 million, EUR79 million, and GBP6 million.
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The loan is intended to finance part of the funds necessary for SMFLH to acquire British company Macquarie Rotorcraft Limited (MRL)
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Helicopters are critical infrastructure used for public-service missions, such as emergency medical services, search and rescue operations, and disaster response. In recent years, amid a global rise in natural disasters attributable to climate change, including forest fires and floods, their social importance has become even greater. Helicopter leasing companies support the maintenance and strengthening of social infrastructure by providing operators with a stable supply of aircraft. SMFL operates its helicopter leasing business through SMFLH, which has become the world’s second-largest player in terms of the number of helicopters owned and managed following its acquisitions of LCI Investment Limited (LCI) and MRL.
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Through the acquisition of MRL, together with the integration of LCI, SMFLH expects to expand its business and capture additional profit opportunities by increasing the number of helicopters it owns and manages to a world-class level and acquiring a new customer base. This loan provides financial support for SMFL’s overseas M&A. It will contribute toward maintaining and strengthening the international competitiveness of the helicopter leasing industry invested in by Japanese companies, while also promoting the wider adoption of helicopters as critical infrastructure.
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As Japan’s policy-based financial institution, JBIC will continue to actively support the expansion of business opportunities of Japanese companies, including their overseas M&A activities, in collaboration with private financial institutions.
