SMBC Aviation Capital closes $1 billion loan facility with the Japan Bank for International Cooperation

victoria@aviationnews-online.com
By victoria@aviationnews-online.com November 29, 2019 11:40

SMBC Aviation Capital closes $1 billion loan facility with the Japan Bank for International Cooperation

SMBC Aviation Capital has closed a $1 billion loan facility with the Japan Bank for International Cooperation (JBIC).

The facility has a 10-year term and will be used to finance a proportion of SMBC Aviation Capital’s order book with Airbus and Boeing in the coming years.

JBIC is a policy-based financial institution owned by the Japanese government which promotes the overseas development of strategically important Japanese owned enterprises. 

Commenting on the transaction, Barry Flannery, chief financial officer of SMBC Aviation Capital, said: “This transaction further expands our relationship with JBIC. This is a strong endorsement of SMBC Aviation Capital’s strategy and the continued success of our partnership with the SMBC Group and Sumitomo Corporation.

“Our shareholders bring significant financial support and product strength to our business. We in turn, have delivered strong and stable profitability in addition to expanding their financing activities in the global aviation space, so that we have true strategic alignment”  

Commenting on the transaction, JBIC says this loan is for “supporting overseas business expansion of the Japanese aircraft leasing industry”, and they express in its press release that “as Japan’s policy-based financial institution, JBIC will continue to provide financial support for the overseas business development of Japanese companies.”

Last week, SMBC Aviation Capital announced an increase in profit before tax of $200 million for the halfyear to September 30 2019, which is a 19% increase on the comparative period last year. 

The group also posted $597.4 million in lease revenue and other operating income, up 13% from the $530 million reported in the same period last year.

The group said it was continuing its progress in transitioning to new technology aircraft with its assets valued in excess of $12.4 billion, up 10% from last year where it posted $11.2 billion, this comprised of 237 owned aircraft and pre-delivery payments. 

It was announced that 42.2% of portfolio transitioned to new technology assets, up 30.6% from September 2018 with upward trend set to continue, the company said.

victoria@aviationnews-online.com
By victoria@aviationnews-online.com November 29, 2019 11:40