Joint Venture Between Daiwa Securities Group Inc. and Airborne Capital Limited: Introduction of Daiwa Airborne Inc.

Please refer to the full Notice (.pdf) - summary extracts below:

  • Daiwa Securities Group Inc. (hereinafter "Daiwa Securities Group") is pleased to announce the completion of the payment procedures for the acquisition of common shares and non-voting preferred shares of the Japanese subsidiary, Airborne Capital Japan GK.

  • Airborne Capital Japan GK has undergone a reorganization of its legal structure into a corporation (kabushiki kaisha) of Airborne Capital Limited (hereinafter "Airborne") through a third-party allotment, as previously announced on November 22, 2024.

  • The joint venture between Daiwa Securities Group and Airborne will be named " Daiwa Airborne Co., Ltd.", and Yoichi Hirotani, who was previously the Japan Representative of Airborne Capital Japan GK, has been appointed as the President and CEO of Daiwa Airborne Co., Ltd.

  • This company will commence operations to provide proposals for JOL (Japanese Operating Lease) products and customer support related to lease management.



Capital and Business Alliance in the Aircraft Leasing Sector between Daiwa Securities Group and Airborne Capital Limited

Please refer to the full Notice (.pdf) - summary extracts below:

Daiwa Securities Group Inc. (hereinafter “Daiwa Securities Group”), its consolidated subsidiary Daiwa Securities Co. Ltd. (hereinafter “Daiwa Securities”), and Airborne Capital Limited (hereinafter “Airborne Capital”) are pleased to announce that they have agreed to enter into a capital and business alliance (hereinafter “the Alliance”) in the aircraft leasing sector, on November 22, 2024.

  • The global commercial aircraft market is anticipated to recover from the downturn caused by the COVID-19 pandemic, with annual passenger demand growth projected at 3-4%, indicating promising market potential. Aircraft leasing offers numerous benefits to airlines, including cost reduction at the time of introduction and flexible equipment replacement. As a result of strong leasing demand, it has emerged as a compelling investment product for investors.

  • In this environment, Daiwa Securities Group and Airborne Capital have agreed to enter into this Alliance with the aim of enhancing their ability to provide solutions that meet the needs of high-net-worth individuals and other clients in the wealth management business by leveraging the strengths and resources of both companies.

  • Daiwa Securities Group and Airborne Capital will leverage their respective strengths to launch a joint venture. Specifically, Daiwa Securities Group will contribute its extensive customer base, including high-net-worth individuals and corporate clients, while Airborne Capital will provide its specialized expertise in aircraft asset management to the joint venture. The joint venture company will offer comprehensive support to clients through the proposal of JOL (Japanese Operating Lease) products and the management of leasing services. Furthermore, the implementation of personnel exchanges, including secondments, is planned.

  • Comments from Akihiko Ogino, President and CEO of Daiwa Securities Group: “In the aircraft leasing sector, we offer products through introductions to major leasing companies in collaboration, targeting high-net-worth individuals and corporate clients. We have built a solid track record of collaboration with Airborne Capital, one of the world's leading aircraft asset management companies. We believe that their business model, which provides tailored solutions to meet customer needs, supports our group’s 'Customer-first Operations.' Through this Alliance, we will develop joint ventures and offer a lineup of aircraft leasing products, which are highly demanded by ultra-high-net-worth individuals and other clients, as part of our total asset consulting solutions.”

  • Comments from Ramki Sundaram, CEO of Airborne Capital: “We are very excited to launch this partnership with Daiwa Securities, whose deep market reach and innovative solutions make them an ideal partner to expand our existing business in Japan. This formalises our existing collaboration and aims to merge Daiwa Securities’ strength in delivering tailored high-value solutions with our aviation expertise, enabling the expanded offering of specialised aircraft leasing products in Japan, a key market in Airborne’s global growth strategy. “

Airborne Capital Closes Its Debut Investment-Grade Corporate Note Financing

Airborne Capital Limited (“Airborne Capital”) announced the closing of a US$20.0 million investment-grade rated corporate note financing offered through its U.S. subsidiary Airborne Capital USA LLC. Proceeds from the transaction will be used to refinance existing debt and for growth capital.

  • Airborne Capital currently manages in excess of US$2 billion of aircraft assets for a wide variety of institutional investors and airlines across the globe.

  • “This new capital raise paves the way for further growth and allows us to continue expanding our asset management business. This financing reflects our strong commercial position, and better positions us to serve our clients in the increasingly evolving aviation space” said Hari Raghavan, Partner at Airborne Capital. “This transaction marks a significant milestone for Airborne. It represents the confidence that institutional investors have in Airborne Capital.”

  • Brean Capital, LLC served as Airborne Capital’s Exclusive Financial Advisor and Sole Placement Agent in connection with the transaction.

    Press Release (.pdf)

Investec provides senior financing of over $100m to Airborne Capital

Investec Aviation Finance (Investec) has provided $100m+ of financing to Airborne Capital as demand for debt in the sector continues to strengthen.

  • The senior debt facility was secured against a portfolio of five young narrowbody aircraft.

  • Each aircraft had a different lessee, including a mix of flag carriers and low-cost carriers. The facility was structured to cater to specific lease extension options while also addressing the maintenance contributions and end-of-lease return obligations.

  • Derek Wong at Investec Aviation Finance said: “We are delighted to close this significant transaction with Airborne Capital and deepen the relationship between two innovative aviation capital providers.  We look forward to working with Airborne in future projects.”

  • Anand Ramachandran, Chief Financial Officer at Airborne Capital, said: “This deal will allow us to continue growing our business and client base. It was a pleasure to complete this first transaction with Investec and we look forward to working with its team again in future.”

    Press release (.pdf)

Airborne Capital Supports Yamato HD's First A321 P2F Freighter Introduction

©️YAMATO HOLDINGS CO., LTD. 

  • Airborne Capital Limited (‘Airborne Capital’) congratulates Yamato Holdings Co., Ltd.’s (‘Yamato HD’) on the delivery of its first passenger-to-freighter (‘P2F’) conversion A321 aircraft.

  • Airborne Capital acted as a project manager in assisting Yamato HD with its A321 P2F conversion project.

  • Over the course of 2021 to 2023, Airborne Capital provided Yamato HD with assistance and project management services on this program, including sourcing the aircraft and managing the P2F conversion. This ultimately culminated in a successful ferry flight of the aircraft into Narita International Airport, Japan on 6th November 2023.

  • Airborne Capital is highly pleased with the outcome of this project, and would like to use this opportunity to congratulate Yamato HD on the addition of the aircraft to its fleet.

    Press Release (.pdf)

Airborne Capital Announces the Leasing of 1 x A320 Aircraft to GlobalX

  • Global Crossing Airlines Group, Inc. (“ GlobalX ”) is pleased to announce it has taken delivery of its seventh passenger A320, which is being leased from Airborne Capital Limited (“Airborne”).

  • The aircraft is a sistership to four ex-Alaska A320 aircraft currently operating at GlobalX, with a 12 business-138 economy seat configuration and installed Wi-Fi.

  • “We are pleased to be working with Airborne on this aircraft and we expect to develop a strong relationship with them as our fleet grows. We greatly appreciate their support and their diligent work in getting this aircraft delivered to us,” said Ed Wegel, Chair and CEO.

    Press Release (.pdf)

Airborne Capital Announces the Appointment of Bruno Benveniste-Profichet

  • Airborne Capital Limited (‘Airborne Capital’) today announces the appointment of Bruno Benveniste-Profichet (LinkedIn Profile: https://www.linkedin.com/in/bbenveniste/) to support its commercial activities in the Asia-Pacific region.

  • Bruno has more than 10 years’ experience in aviation finance and joins Airborne Capital from Nordic Aviation Capital where he served most recently as Vice President Marketing.

  • Bruno also brings with him previous experience in sales, marketing and transactions management. Prior to Nordic Aviation Capital, Bruno worked at Avation PLC and Airbus (formerly known as EADS) in their respective sales and marketing groups.

  • This new appointment demonstrates Airborne Capital’s continued commitment to ensuring its relevance and presence in the aviation asset class across all geographies.

    Announcement (.pdf)

Airborne Capital Announces the Appointment of Yvan Bachkine

  • Airborne Capital Limited (‘Airborne Capital’) today announces the appointment of Yvan Bachkine (profile: www.bit.ly/3hqsHbj) to manage its portfolio management and asset trading activities.

  • Yvan has more than 12 years’ experience in aviation finance and joins Airborne Capital from BOC Aviation where he served most recently as Vice President, Aircraft Sales.

  • Previously, Yvan has also worked in Natixis Investment Bank with the Shipping and Project Finance Group. Yvan also brings with him a wealth of experience in treasury, pricing, and transaction / risk management.

  • This new appointment demonstrates Airborne Capital’s continuing commitment to delivering the best outcomes for its managed assets portfolio.

    Announcement (.pdf)

Marathon Asset Management, L.P. Closes Aircraft ABS Transaction with Airborne Capital Limited Serving as Advisor and Servicer

  • Airborne Capital Limited (‘Airborne Capital’) announces the closing of its second asset backed securitisation (‘ABS’) transaction, MAST 2022-1.

  • Marathon Asset Management, L.P. (‘Marathon’) is the sponsor of the ABS while Airborne Capital is the servicer

  • The $303.7 million ABS offered one tranche of notes, all of which have been privately placed, and secured on a portfolio of 15 narrowbody aircraft including two Boeing 737 MAX 8, two Airbus A320neo, six Airbus A320-200s and five Boeing 737-800NG aircraft

  • The portfolio has a weighted average age of 6.0 years and an average remaining lease term of approximately 6.4 years

  • The notes are A- rated, with an initial loan-to-value (LTV) ratio of 61.1%

  • Mizuho Securities was the structuring and placement agent while Clifford Chance and Vedder Price were the legal advisors

    Press Release (.pdf)

Mercuria Investment Group and Airborne Capital Establishes an Aircraft Investment Fund in Japan

  • Airborne Capital Limited (“Airborne”) and Mercuria Investment Co., Ltd. (“Mercuria”) are pleased to announce the establishment of MACH I, an aircraft investment fund targeting and tailored for Japanese investors.

  • MACH I aims for a fund size of approximately US$400 million and is the first aircraft investment fund for Japanese investors established post COVID-19; the fund seeks to invest in a pool of young, liquid, and current / new technology aircraft assets diversified across a variety of geographies and airline clients.

  • Airport Facilities Co., Ltd. (“AFC”) will be one of MACH I’s anchor investors.

    Press Release (.pdf)

Airborne Capital Limited Mandated to Sell Two Boeing 787-9 Aircraft

  • Airborne Capital Limited (www.airbornecapital.aero) has been exclusively mandated to offer for sale two Boeing 787-9 aircraft bearing manufacturer’s serial numbers 37307 and 37308. 

  • All potential bidders for the Aircraft will be required to sign a confidentiality agreement no later than November 29, 2021 at 5:00 p.m. (Eastern time). The deadline for submitting a bid for the Aircraft is December 14, 2021 at 12:00 noon (Eastern time).

  • The Aircraft are to be sold as a single lot on an ‘as is, where is’ basis, with all faults, and otherwise in accordance with a sale process that will be conducted in accordance with certain procedures (the “Sale Procedures”).  To request a copy of the Sale Procedures and for other inquiries relating to the sale, please contact Airborne Capital Limited by emailing remarketing@airbornecapital.aero with “2x Boeing 787-9” in the subject line.

    Announcement (.pdf)

Airborne Capital and Mercuria Investment Group Agree Aviation Finance Joint Venture in Japan

  • Airborne Capital Limited (“Airborne”) and Mercuria Investment Holdings Co., Ltd. (“Mercuria”) are pleased to announce the agreement, between Airborne and Mercuria’s subsidiary Mercuria Investment Co., Ltd., to enter into a joint venture for the operation of a new entity in Japan, called “Mercuria Airborne Capital Co., Ltd.” (“JV”).

  • The JV provides Airborne with increased access to Japanese aviation investors, and it enables Mercuria to further expand its expertise in cross-border alternative investments, catering to Japanese investors seeking bespoke aviation investments.

  • The business will be a bridge between the specific needs of Japanese aviation investors and the changing dynamics in the global aviation market.

  • Despite the challenges posed by the COVID-19 pandemic, aircraft investment continues to provide attractive investment and yield opportunities to investors worldwide, with the JV being established in anticipation that the role institutional investors play in the aviation leasing industry will grow at a faster pace.

    Press Release (.pdf)

Airborne Prices Inaugural Aircraft ABS Transaction

  • Airborne Capital prices its inaugural asset backed securitisation (ABS) transaction, led by Deutsche Bank, Mizuho and Credit Agricole-CIB as joint lead structuring agents and joint lead bookrunners.

  • The $637 million Tailwind 2019-1 ABS is offering in three tranches of notes secured on a portfolio of 17 aircraft – 15 narrowbody aircraft: seven A320-200s, three A320neos, three A321-200s and two 737-800s; and two widebodies: one 777-300ER and one A330-300 – with a weighted average age of 4.7 year and an average remaining lease term of approximately 6.3 years.

  • The transaction comprises: $510million A-rated A notes with an initial loan-to-value (LTV) ratio of 66.5%; $81 million BBB-rated C notes with an LTV of 77%; and $46 million BB- rated C tranche with an LTV of 83%.

  • The A and B notes amortise on a 13.5-year straight-line schedule, while the C notes amortise on a seven-year straight-line schedule. 

  • Airborne will purchase at least 10% of the equity certificates supporting the E Note issued by Tailwind 2019-1, which it will be required to hold until the expected final payment date in November 2026.

  • Credit Agricole-CIB is providing the nine-month liquidity facility, with SG American Securities at the joint bookrunner. 

  • Tailwind 2019-1 will include FEXCO Aviation Services as a first time managing agent for an aircraft ABS transaction. 

L1 Treasury and Airborne Capital commit US$250m to launch of AltitudeOne Aviation

  • AltitudeOne Aviation Ltd (“AltitudeOne Aviation”) is a venture launched by LetterOne Treasury Services SA (“L1 Treasury”) and Airborne Capital Limited (“Airborne Capital”)

  • AltitudeOne Aviation will invest in a diversified portfolio of in-production narrow body and wide body commercial aircraft leased to airlines across the world

  • L1 Treasury  manages the liquidity and financial investments of LetterOne Group (“LetterOne”), an international investment business with net assets in excess of US$25bn

  • Airborne Capital is a specialist aircraft leasing and asset management business with offices in Dublin and London

  • Airborne Capital has a highly experienced management team with over 100 years of combined experience in aviation

    Press release (.pdf)

Natixis Investment Managers acquires stake in Airborne Capital

  • Natixis Investment Managers, one of the world’s largest asset management firms and the asset
    management arm of French bank Group BPCE, has acquired a minority stake in specialist aircraft
    lease and asset management firm Airborne Capital. The stake was acquired for an undisclosed sum from the existing shareholders, comprising Airborne’s founding management team and FEXCO, Ireland’s largest privately owned financial services company.

  • The deal provides Airborne with access to a worldwide asset management platform which will help to accelerate its plans to grow the business to have aircraft assets under management of over $5bn within the first 5 years of operations. The transaction enables Natixis Investment Managers to continue to expand its expertise in alternative investments, specifically real assets.

    Press release (.pdf)