Aviation Finance

We have, however, selected a commercial financing for ICBC Financial Leasing as the most important Aviation Finance deal concluded in 2010: DVB, through its Singapore-based subsidiary DVB Group Merchant Bank (Asia) Ltd, arranged and underwrote financing in the amount of US$161.9 million for ICBC Financial Leasing to refinance an aviation portfolio that includes eight used narrowbody aircraft (vintage 2001–2008) on lease to four different airlines in September 2010.

ICBC Financial Leasing is a 100% subsidiary of ICBC Bank, and an aspiring aircraft lessor in China. This deal was the first third-party term loan for ICBC Financial Leasing, who had up until that point funded all aircraft acquisitions through internal funds. The deal involved a five-year term loan to ICBC Financial Leasing under a structure which needed to be adjusted to the complex regulatory framework in China.

This was DVB's first deal with a Chinese-bank-sponsored leasing company and will undoubtedly pave the way for greater co-operation between DVB and ICBC, as well as more Chinese lessor financings, in the future.