Leading financiers of Asian business jets and helicopters
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
(Source: Bombardier Business Aircraft)
Most lenders are focused on supporting existing private bank or corporate clients.
|Bank of America||CIT||Citi Private Bank||Credit Suisse||Deutsche Bank||GE Corporate Aircraft|
|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.
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.
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]
Bank of America Merrill Lynch
Particularly focused on corporate and individual customers of Bank of America Merrill Lynch and on US structures.
Has transitioned from a US focused financier to a truly international one. Asia is very important to their growing international business.
+1 972 677
Vice President, Sales
+1 858 459 8286
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
Very committed to growing in the region but only supporting existing and new private bank clients.
+852 3407 8253
Deals originated by private bank but advised by Natesan Paramasivan in the bank’s aircraft finance team from Singapore.
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.
Head of Origination
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.
203 393 7247
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