Japanese bank MUFG is to acquire the aviation finance division of Germany’s DVB Bank, following a purchase and transfer agreement.
It will transfer the division – which includes the entire €5.6 billion lending portfolio, as well as staff and infrastructure – to MUFG and its affiliate BOT Lease.
MUFG says it will also take over DVB’s aviation investment management and asset management activities, which will be placed in a newly-created BOT Lease subsidiary.
The two sides expect to close the transaction, which is subject to regulatory approval and other conditions, in the second half of this year.
MUFG senior managing corporate executive Masato Miyachi says aviation finance is a “key growth pillar” for the Tokyo-based bank.
“This acquisition will see a step-change in our ability to offer bespoke solutions to our clients,” adds Miyachi.
DVB's aviation finance arm provides funding for various aircraft types, long- and short-haul, including passenger and freighter airframes. It says its financing covers a range of services including bridge loans and long-term “complex” facilities.