-Change of shareholding structure in SMBC Aviation Capital-
Tokyo November 29 2018: SMBC Aviation Capital, one of the world's leading aircraft leasing companies, has announced that it has received USD $1 billion new capital from its shareholders.This follows on from the original announcement in November 2017 of Sumitomo Mitsui Financial Group, Inc. ("SMFG" ) and Sumitomo Corporation's ("Sumitomo Corp" ) intention to provide further capital.
The new capital comprises of USD $700 million preferred equity capital from Sumitomo Mitsui Finance and Leasing Company, Ltd. ("SMFL" ) and Sumitomo Mitsui Banking Corporation ("SMBC" ) and a USD $300 million subordinated loan from SMBC.It endorses SMBC Aviation Capital's growth plans and strategy and enhances the company's continued ability to provide its customers with a range of financing solutions.
Commenting on the capital, Peter Barrett, CEO, SMBC Aviation Capital said, "We are pleased to announce that we have received this new capital today.It is a strong message from our shareholders of their confidence in our strategy.
Given the strength of our balance sheet, we are well placed for the future to continue to provide a broad range of products and services to our customers that will differentiate us in a competitive market."
Masaki Tachibana, President, SMFL added, "SMBC Aviation Capital has a robust business model and the completion of this capital increase ensures that the company can continue to set itself apart from the competition, as it prepares for continued growth."
SMFG and SC have changed their respective ownership ratios to 50% each in SMFL, the primary leasing vehicle between both companies. SMFL now retains 68% of SMBC Aviation Capital with SMBC retaining 32%.