SMBC bolsters cash with $1 billion investment

SMBC bolsters cash with $1 billion investment

The backers behind SMBC Aviation Capital are injecting a further $1 billion into the company, as it prepares to place further aircraft orders.

SMBC’s shareholders, Sumitomo Mitsui Financial Group (SMFG) and Sumitomo Corporation, will complete the funding by the end of March 2018.

The funds will be used to expand the business, as well as helping clients finance aircraft.

SMBC is one of the largest commercial aircraft lessors in the world. In its 2016 year-end financial report, it said it had 261 aircraft valued at almost $10 billion on its books, as well as orders and options for an additional 200 Airbus and Boeing aircraft.

Recent years have seen the introduction of increased competition in the commercial aircraft leasing sector, especially from Chinese companies entering the market.

According to a report by Reuters earlier this year, approximately 42% of the global commercial aircraft fleet is currently leased.

Alud Davies
By Alud Davies November 7, 2017 17:29