SMBC Aviation Capital secures $1bn loan facility with JBIC

Global aircraft leasing company SMBC Aviation Capital has secured a ten-year $1bn loan facility with the Japan Bank for International Cooperation (JBIC).

The facility will be used to some part of SMBC Aviation Capital’s order book with Airbus and Boeing in the next few years.

The Japanese Government-owned JBIC is a policy-based financial that supports enterprises’ development overseas.

SMBC Aviation Capital chief financial officer Barry Flannery 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.”

Established in 2001, SMBC Aviation Capital has 83 airline customers in 37 countries.

The company has owned and managed an aircraft fleet with a value of more than $18.9bn as of 30 September.

The leasing company announced a 19% increase in profit before tax of $200m for the half-year to 30 September.

Last month, SMBC Aviation Capital concluded the sale of 29 aircraft portfolio on behalf of aircraft securitisation company, Airspeed.

Under this deal, 28 aircraft were sold to aircraft leasing company Genesis. The buyer of one additional aircraft was not disclosed.