-Shareholders to restructure joint leasing partnership in SMBC Aviation Capital-
Tokyo November 6th 2017:SMBC Aviation Capital, one of the world's leading aircraft leasing companies, has announced that its shareholders, Sumitomo Mitsui Financial Group, Inc. ("SMFG" ) and Sumitomo Corporation ("Sumitomo Corp" ) have agreed that the company will receive up to USD $1 billion in capital by March 31st 2019.
The equity will support SMBC Aviation Capital's growth plans including the funding of new aircraft coming on stream from 2019 and will ensure that the company can continue to offer its customers innovative aircraft financing solutions to meet their fleet requirements.
In conjunction with this, the shareholders have also agreed that the primary leasing vehicle between both companies, Sumitomo Mitsui Finance and Leasing Company, Ltd. ("SMFL" ), will become a 50:50 joint venture.
The restructuring reaffirms SMFG's and Sumitomo Corp's commitment to SMBC Aviation Capital while also enabling both parties to realise a material increase in the competitiveness and growth of their strategic joint operating partnership.
Commenting on the developments, Peter Barrett, CEO, SMBC Aviation Capital said, "This capital is further evidence of the continuing support of our shareholders and of the strategic importance of SMBC Aviation Capital to their growth strategy.
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.It also further enhances our integration with our shareholder, a key differentiator for us in this industry."
Masaki Tachibana, President, SMFL added, "This capital injection demonstrates our confidence in SMBC Aviation Capital's strategy and will enable the company to strengthen its capital position to deliver on its sustained growth and development objectives."
The restructuring has been agreed between SMFG and Sumitomo Corp and will be effective by March 31st 2019.It is subject to approval by relevant foreign and Japanese domestic authorities.
Issued by Powerscourt on behalf of SMBC Aviation Capital: Selene Alford: 087 642 8844
Note to Editors:
Shareholder Structure and reorganisation
Specifically, SMFG and Sumitomo Corp will adjust their respective ownership percentages in their joint leasing partnership, SMFL, to 50%.
SMFG will maintain its 66% ownership in SMBC Aviation Capital ultimately while Sumitomo Corp will hold the remaining 34%. Sumitomo Mitsui Banking Corporation ("SMBC" ), SMFG's 100% subsidiary will increase its direct ownership of SMBC Aviation Capital from 30% to 32% and SMFL's interest in the company increasing from 60% to 68%.
See supporting diagrams:Current Ownership Structure
New Ownership Structure (effective by March 31st 2019)