EANS-News: DVB Bank, Mitsubishi Corporation (UK) and Engine Lease Finance Corporation enter into new engine leasing venture
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Joint Ventures/Cooperation/Collaboration
Frankfurt am Main (euro adhoc) - DVB Bank SE (DVB), the Frankfurt-based bank that specialises in transport finance, Mitsubishi Corporation (UK) Plc (MCUK), the London subsidiary of Mitsubishi Corporation (MC), the global trade and investment company and Engine Lease Finance Corporation (ELF), the world´s largest independent aero-engine lessor, have formed a joint venture company, Deucalion MC Engine Leasing Limited, incorporated in Ireland, for the purpose of investing in commercial aircraft engines subject to leases with airlines worldwide.
The joint venture company has completed its first portfolio acquisition, consisting of seven commercial aero engines which were acquired from ELF during December 2009 and March 2010. The portfolio comprises IAE V2500, CFM56-5/-7 and CF6-80 engine types on operating leases with carriers from Europe, the Middle East, Asia and the Americas.
The leases range in term from one to four years and have a staggered maturity profile. ELF retains lease management and remarketing responsibility.
Under the terms of the agreement, DVB and MCUK are the joint senior debt providers and Deucalion funds (managed by DVB´s Group Investment Management team in London), MCUK and ELF are equity providers. DVB´s engine management subsidiary, TES Aviation completed the pre purchase due diligence on behalf of the joint venture partners.
Bertrand Grabowski, Member of the Board of Managing Directors of DVB and responsible for Aviation commented, "We are delighted to have concluded this new joint venture vehicle which represents our first such collaboration with Mitsubishi Corporation (UK) Plc and our third with Engine Lease Finance Corporation. Our previous collaborations have proved to be very successful and we fully expect this new venture to be equally so. This new venture continues the Bank´s strategy of investing in the aero engine sector, giving it an ownership interest through the Deucalion funds in a total of 24 aero engines on leases worldwide. This is in addition to its successful acquisition of the TES Aviation business in 2007."
Katsuaki Morooka, General Manager of the Industrial Finance, Logistics and Development Division in MCUK, added, "We are very excited to be able to start this new business platform with ELF and DVB Bank in Europe. MC is currently running an aircraft leasing business in Dublin and we believe that this joint venture will give a new and progressive perspective to our airline business in this region. We hope the project will go from strength to strength and grow with the support of our partners."
Jon Sharp, President and CEO of ELF stated, "We are pleased to have established a new partner in Mitsubishi Corporation (UK) Plc and believe that our affiliation with them will reflect the excellent collaboration we have with Deucalion and DVB, with whom we now have concluded our third such transaction. Our intentions towards our partnerships are always long-term driven and we look forward to achieving more together."
Note to Editors:
DVB Bank SE, headquartered in Frankfurt/Main, Germany, is the leading specialist in the international Transport Finance business. The Bank offers integrated financing solutions and advisory services in respect of Shipping Finance, Aviation Finance and Land Transport Finance. TES Aviation, a subsidiary of DVB, is an aircraft engine asset management organization, offering engine management consultancy services, engine disassembly, part-out and materials procurement, to owners and operators of aircraft engines. www.dvbbank.com www.tes-uk.com
Mitsubishi Corporation (UK) Plc is the London subsidiary of Mitsubishi Corporation. Based in Tokyo, Japan, it is a general trading company with over 200 bases in Japan and approximately 80 countries covering a wide range of commercial business sectors. As one of the world's most diverse business enterprises, Mitsubishi Corporation works closely with its global clientele to develop new businesses through project coordination, sourcing of raw materials, capital investments and the development of sales and marketing channels. www.mitsubishicorp.com/gb/en/
Engine Lease Finance Corporation is the world´s leading spare engine financing and leasing company, specialising in the provision of flexible medium to long-term spare engine packages for the airline industry. Headquartered in Shannon, Ireland, ELF is owned by BTMU Capital Corporation of Boston, USA, which is itself owned by The Bank of Tokyo-Mitsubishi UFJ, Ltd., one of the world´s largest financial institutions. The current ELF engine leasing portfolio (owned and managed) exceeds 200 engines, with a total value approaching $1.5 Billion. www.elfc.com
For further information on the project, please contact:
DVB Paul Da Vall, Senior Vice President, Group Investment Management, Phone +44 (0) 20 7618 9728, paul.davall@dvbbank.com
MCUK Katsuaki Morooka, General Manager, Industrial Finance, Logistics and Development Division, Phone +44 (0) 20 7025 3088, katsuaki.morooka@mitsubishicorp.com
ELF Jon Sharp, President and Chief Executive Officer, Phone +44 (0) 7785 314295, jon.sharp@elfc.com
For Corporate Communications, please contact:
DVB Prof. Dr. Borislav Bjelicic, Corporate Communications, Phone + 49 (0) 69 9750 4390, borislav.bjelicic@dvbbank.com
MCUK Julie Rogers, Corporate Communications, Phone +44 (0) 20 7025 3034, Fax +44 (0) 20 7025 3029, julie.rogers@mitsubishicorp.com
end of announcement euro adhoc --------------------------------------------------------------------------------
Further inquiry note:
Prof. Dr. Borislav Bjelicic, Corporate Communications
Phone + 49 (0) 69 9750 4390, borislav.bjelicic@dvbbank.com
Branche: Banking
ISIN: DE0008045501
WKN: 804550
Börsen: Stuttgart / free trade
Düsseldorf / free trade
Frankfurt / regulated dealing/general standard
Original content of: DVB Bank SE, transmitted by news aktuell