Wednesday 20 June 2018

Irish lessor closes $600m funding round

SMBC Aviation Capital is the world’s fourth-largest aircraft lessor. Stock image
SMBC Aviation Capital is the world’s fourth-largest aircraft lessor. Stock image
Ellie Donnelly

Ellie Donnelly

Dublin-based SMBC Aviation Capital, the world's fourth-largest aircraft lessor, has closed a $600m (€489m) funding round.

The round compromised a $200m term loan and a $400m revolving credit facility with a consortium of primarily Asian banks. Proceeds from the funding will be used for general corporate purposes.

In a statement yesterday, SMBC said that the transaction generated strong interest from the banking market resulting in a high level of over subscription.

"The level of interest in this transaction further demonstrates the market's confidence in our business and our commitment to diversifying our funding sources," Barry Flannery, chief financial officer of SMBC, said.

"We are delighted to broaden our relationships with some of the leading banks in both the Asia Pacific region and in aviation generally. Together with our corporate bond programme and ongoing shareholder support, this will underpin the delivery of our future growth".

In November, SMBC reported a pre-tax profit of $167m (€142m) in the first half of its financial year. That was up 3.1pc year-on-year. Revenue and other income hit $566m (€461m) in the first half.

SMBC has aircraft assets of $10.5bn (€8.5bn), including 248 owned, and 177 managed aircraft. It has commitments to buy about 251 aircraft.

Irish Independent

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