Japanese lenders to seek more foreign aircraft deals: MUFG | News | Airfinance Journal

Japanese lenders to seek more foreign aircraft deals: MUFG

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A slowdown in the Japanese domestic market will help drive more international aircraft financing from the Asian country, according to Bank of Tokyo-Mitsubishi's managing director, head of aviation – structured finance office for EMEA.

“Aviation has been in the DNA of Japanese banks for the last 30 years, and Japanese banks have been increasing their exposure over the last couple of years. Aviation has been a focus for them and there are many reasons why,” Michel Dembinski tells Airfinance Journal.

“The Japanese like to finance things they can touch," he says, pointing out that MUFG, a Japanese bank, is often ranked first in the global project finance league tables, as the assets in these deals are palpable.

"Recent considerations include the fact that the domestic banking market is not growing and aviation provides good growth opportunities,” he adds.

In Boeing’s latest current aircraft finance market outlook released last week, the US manufacturer forecast Japanese bank lending would rise by 5% percentage point next year, more than any other country.

Dembinski says that this will likely lead to a growth in Japanese banks acting on transactions for airlines and lessors outside Japan.

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Transaction Snapshot
Air Company | Bond issue | 01-24 | $1.5bn
Financial Close:
11/02/2024
SPV:
Some Aviation Trust
Value:
$1,500.00m USD
Full Details