SMBC Aviation Capital has finalised a capital infusion of $1 billion from its shareholders based on an agreement first announced in November 2017.
Sumitomo Mitsui Financial Group and Sumitomo Corporation signed the final agreement, which includes the reorganisation of the SMFG and Sumitomo Corp joint leasing partnership to a 50:50 ownership structure, will see both invest $700 million of equity and $300 million subordinated loan from SMBC to the leasing unit, says a statement from the company.
The equity will support SMBC Aviation Capital’s growth plans including the funding of new aircraft delivering from 2019.
"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," said Peter Barrett, chief executive of SMBC Aviation Capital, in a 6 November statement. "It also further enhances our integration with our shareholder, a key differentiator for us in this industry."
SMBC Aviation Capital has a total of 202 aircraft on order, Flight Fleets Analyzer shows, 30 of which are scheduled to deliver in 2019.
Both deals will be completed by January 2019.
Source: Cirium Dashboard