Japanese shareholders Sumitomo Mitsui Financial Group (SMFG) and Sumitomo Corp have agreed to provide up to $1bn in capital to Ireland-based aircraft leasing company SMBC Aviation Capital.
To be injected by 31 March 2019, the equity fund is expected to help SMBC Aviation Capital to support its growth plans, including the acquisition of new aircraft taking place from 2019.
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The funding will also allow SMBC to continue to help its customers with innovative aircraft financing solutions.
SMBC Aviation Capital CEO Peter Barrett said: “This capital is further evidence of the continuing support of our shareholders and of the strategic importance of SMBC Aviation Capital to their growth strategy.
“This capital ensures that we are well-positioned to deliver on our own growth plans by enabling us to offer our customers innovative aircraft financing solutions.
“It also further enhances our integration with our shareholder, a key differentiator for us in this industry.”
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By GlobalDataSMFG and Sumitomo have also agreed to make the primary leasing vehicle between both companies, Sumitomo Mitsui Finance and Leasing Company (SMFL), as a 50:50 joint venture.
The proposed restructuring is expected to enable both SMFG and Sumitomo to realise a material increase in the competitiveness and grow their strategic joint operating partnership.
Subject to approval by relevant foreign and Japanese domestic authorities, the restructuring is scheduled to be effective by 31 March 2019.
