- Region: North America
- Marine and Aerospace
- Overseas Investment Loans
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The Japan Bank for International Cooperation (JBIC; Governor: AMAKAWA Kazuhiko) signed on October 1 a loan agreement amounting to up to USD240 million (JBIC portion) with Aircastle Limited (Aircastle). Aircastle is registered in Bermuda, and invested in by Marubeni Corporation (Marubeni) and Mizuho Leasing Company, Limited (Mizuho Leasing). The loan is co-financed with financial institutions*1, bringing the total co-financing amount to USD400 million.
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The loan is intended to provide the funds necessary for procuring aircraft for Aircastle to conduct its aircraft leasing business.
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Aircastle is a leading aircraft leasing company with offices in Stamford, Connecticut; Dublin, Ireland; and Singapore. Its core business is acquiring new and pre-owned aircraft from other aircraft investors and leasing them to airlines. Leveraging its expertise as a mid-life aircraft lessor, Aircastle has established a differentiated position in the mid-life aircraft market through the acquisition, remarketing, and disposal of fleet assets. The company aims to increase its revenue opportunities under its strategy to continuously acquire and sell aircraft. Furthermore, it works to create a sustainable supply chain and product lifecycle for aircraft in collaboration with Marubeni’s aircraft maintenance, dismantling, and aftermarket parts trading operations, thereby enhancing the value of used aircraft in the aviation industry.
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The loan will financially support these initiatives of Aircastle, thereby contributing toward maintaining and improving the international competitiveness of the Japanese aircraft leasing industry. By promoting the reuse and recycling of aircraft, the loan will also help ensure stable air transportation that supports the industrial base and strengthen the resilience of the aircraft supply chain.
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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.
Note
- *1 MUFG Bank, Ltd., Mizuho Bank, Ltd., The Shanghai Commercial Bank Ltd., The Shizuoka Bank, Ltd., E.SUN Commercial Bank, Ltd., Taipei Fubon Commercial Bank Co., Ltd., Taishin International Bank Co., Ltd., The Gunma Bank, Ltd., and The Bank of Yokohama, Ltd.