Leading financiers of Asian business jets and helicopters

Alasdair Whyte

Asia has not been a key market for business jet financiers. Apart from the occasional deal for a private bank client or corporate with an existing relationship, few international financial institutions were focused on the region.

In 2011, the market changed. Financiers looked at where new aircraft orders where coming from and invested in hiring staff in Asia. Most of these new people have now been in the new positions for one year already and deal flow has increased. Buyers of business jets have a number of international lenders that are keen to finance aircraft in Asia. Asia has not been a key market for business jet financiers. Apart from the occasional deal for a private bank client or corporate with an existing relationship, few international financial institutions were focused on the region.


Aircraft orders by region as a percentage

Regional orders for business jets as a percentage

 

 

 

 

 

(Source: Bombardier Business Aircraft)

Most lenders are focused on supporting existing private bank or corporate clients.


Quick view

  Bank of America CIT Citi Private Bank Credit Suisse Deutsche Bank GE Corporate Aircraft
Finance
Guggenheim
HNWI * * * * * * *
Corporate * *       * *
Aircraft
operators
  *       *  
Importance
of relationship
Preferred Not needed Essential Essential Essential Not necessary Not needed
Source: Corporate Jet Investor

Export credit agencies are also comfortable in supporting aircraft operators in the region.

US Ex-Im Bank financed Hawker aircraft for Indonesia’s Lion Air.


Country guides

China

All foreign lenders are comfortable financing aircraft on the Hong Kong register, or aircraft on  the US register based in Hong Kong. Only a few are comfortable with financing aircraft onto the domestic aircraft register. This is changing, however, as a number of  lenders look to follow suit.

One reason for this is because lenders take increasing comfort in large Chinese aircraft management companies now that tri-partite agreements have become common.

China also has a large number of domestic lenders, including small local banks, that are willing to finance aircraft.

India

At least one lender has had problems repossessing a corporate aircraft in India and this concern is putting others off.

In the next few months one respected aircraft manager will launch an Indian aircraft management company and this will be a major breakthrough for financiers.

“Deal flow has really increased in Asia with many international lenders getting comfortable with the structural and documentary safeguards available to mitigate the jurisdictional legal risks.  The business case for doing so is certainly there.

“Sitting in Hong Kong we not only see a lot of deals into Hong Kong and China, but also places like Malaysia, and Indonesia.

“While we act mainly for lenders, we also act for a number of corporate and individual buyers, and our buyers clients are generally finding it relatively easy to find finance.”

Paul Jebely, Head of Aviation Finance for Asia and Africa, Clyde & Co

For more information please contact: [email protected]


Lender Contacts

Bank of America Merrill Lynch

Particularly focused on corporate and individual customers of Bank of America Merrill Lynch and on US structures.

David Taylor
Hong Kong
+85296836879
[email protected]

CIT

Has transitioned from a US focused financier to a truly international one. Asia is very important to their growing international business.

Mike Kahmann
Managing Director
+1 972 677
1405
[email protected]

David Cesal
Vice President, Sales
+1 858 459 8286
[email protected]

Citi Private Bank

Deals originated by private bank client advisers supported from New York.

Bradford L. von Weise
Director – Global Aircraft Finance
Citi Private Bank
+1 212 559-1444
[email protected]

Credit Suisse

Very committed to growing in the region but only supporting existing and new private bank clients.

Patrick Yan,
Vice president,
Hong Kong
+852 3407 8253
[email protected]

Deutsche Bank

Deals originated by private bank but advised by Natesan Paramasivan in the bank’s aircraft finance team from Singapore.

Natesan Paramasivan
Asset Finance & Leasing, Global Credit
Deutsche Bank AG, Singapore
Tel: +65 6423 5763 | Fax: +65 6534 8128 | Mob: +65 8201 2319 | Email: [email protected]

GE Corporate Aircraft Finance

GE continues to be quite active across the region including China and India. GE seems very committed to Asia – particularly for customers with GE relationships (such as power companies buying aircraft). Also looking to syndicate deals.

Asia Pacific
David Henderson
Head of Origination
[email protected]

India
Prashant Gupta
[email protected]

Guggenheim Business Aircraft Investments

Closed several deals in the region and keen to do more. Guggenheim is not looking for banking relationships, instead concentrating on individual asset-based transactions.

Jim Crowley
203 393 7247
[email protected]


Recommended business jet lawyers

See a list of specialist aviation lawyers based in China, Hong Kong, India and Singapore here.

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