SMBC funds Aircastle Airbus acquisition

SMBC has signed an export credit agency (ECA)-backed debt financing for up to US$250mn with airplane leasing company, Aircastle.

The loan will be used in the delivery of three Airbus A330s to South African Airways (SAA).

This comes as part of an ECA-backed aircraft acquisition project of up to US$530mn for Aircastle, led by France’s export credit agency Coface, which aims to deliver seven new Airbus A330 aircraft during 2011 and 2012.

Of these aircraft, two Airbus A330-200F freighters are due to go to an affiliate of the HNA Group, the parent company of China’s Hainan Airlines, and five will be delivered to SAA.

All of the ECAs concerned are European, although Aircastle have not commented on exactly which countries are involved.

Ron Wainshal, Aircastle’s chief executive officer, says: “These ECA approvals to support up to US$530mn in debt financing put out Airbus A330 acquisition programme on an excellent financial footing. We appreciate the confidence shown by the European export credit agencies, including our lead agency, Coface of France.”

He adds: “We are also very pleased to have secured a US$250mn commitment from SMBC for our largest A330 placement with South African Airways. We’re looking forward to awarding a mandate to provide term financing for the balance of our SAA and Hainan Group deliveries soon and working with the ECAs to support the financing efforts on our remaining three A330 aircraft delivering in the second half of 2011 and the first half of 2012.”