Aircraft Finance & Lease

Aircrafts are considered as one of the safest investment assets by reputed financial institutions. Default on loans/lease contracts with aircraft as underlying assets are very low. Because of this, airlines and leasing companies enjoy one of the best interest rates for sourcing financing for purchase of aircrafts. Aircraft Financing Sector enjoy one of the best regulatory environments under Cape Town Convention thereby reducing risk for investors on aircraft assets.

Hong Kong is one of the top financial centers in the world with favorable legal regime for aircraft financing & leasing. The recent changes in Law in 2017 has enabled Hong Kong as the best aviation financing market in Asia and in the world.

Financing & Leasing Aircrafts:

For purchase of aircrafts, we arrange finance from top financial institutions of the world who specialize in financing aircrafts. We can also arrange lease-financing/financing lease or operating lease for airlines. We have a good database of aircrafts which can help in sourcing appropriate aircrafts for the clients and arrange financing for the same aircrafts. So, we are able to provide aircrafts and financing options as a package to our clients. Funding is provided by financing institutions by keeping aircrafts as collateral. Charge is created on the aircrafts under the rules of Cape Town Convention Treaty.

Sale-and-Leaseback on existing owned aircrafts is also possible for airlines as a way to generate cash from their assets. Different type of aircrafts like Wide-body aircrafts, Narrow-body aircrafts, regional jets, turboprops and business jets are considered for financing/leasing. The key factors in successful aviation financing are: Airline’s Equity in the aircraft in the form of margin amount or down payment, aircraft type, aircraft value, residual value of the aircraft, borrower airline profile and financial strength and the country of the airline. Aircraft Financing are usually cross-border transactions and therefore, the political risk and country risk of the airline’s home country also plays a major role in determining the financing terms.

Financing for Leasing Companies:

We provide fund raising advisory services to leasing companies. We can also arrange funding for aircraft leasing companies from Capital markets in Hong Kong, London, New York, Singapore & New York, bond markets, private equity investors, hedge funds, pension funds and alternative asset investors.

Sources of funds for aircraft leasing companies: Our company provide advisory services to Aircraft leasing companies for use of a wide range of financing tools such as asset- backed securities, debt capital markets, unsecured borrowings, etc.

Aviation Project Finance:

In addition to aircraft financing, Project Finance is arranged by our company for ventures by MRO companies, pilot training schools, airports construction, inventory financing for MROs and airport-support infrastructure. Project promoters’ substantial equity in the project is a must for taking up the projects for financing. We accept proposals for financing/leasing from different parts of the world and our clients are worldwide from Latin America, North America, Middle East, Asia, Europe & Africa.