Aviation Finance – Products
DVB is a market leader in commercial and asset-based financing for aircraft and related equipment. We feature a unique platform of aircraft finance services and products allowing our Aviation Finance to offer our clients far more than the traditional range of banking services. This seamless “one-stop shop” has been meticulously built, with innovation and a view to being a constant provider of aviation capital and services during different economic cycles. It is additionally supported by a strong research team.
Our Aviation Finance clients can today readily draw upon the following range of expertise, in order to fulfil their different requirements:
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Structured Asset Lending
Our Structured Asset Lending activity is at the heart of our client offering. It comprises recourse and non-recourse lending and arranging, plus structured finance activities (including tax and non-tax-based leases). We routinely take residual risk on the sales proceeds of aircraft upon maturity, an activity which requires the formulation of an own-expert opinion of residual values. Here, the specialist research activities of our Aviation Research are a necessary and crucial differentiator.
On this foundation, our Aviation Finance has developed a strong network of relationships with clients and prospects who perceive DVB as a bank that understands their business, and possesses the expertise to provide value-added financial solutions.
Being located in all key economic regions for aviation, we remain in constant touch with our clients. Our London Branch is responsible for relationship management and business origination with aviation clients in Europe, the Middle East and Africa, while our New York office plays a key role in marketing and sourcing in North and South America. Our Singapore Branch and our Singapore-based subsidiary DVB Group Merchant Bank (Asia) Ltd are responsible for relationships and business with clients in Asia, Australia and Oceania, and finally DVB Transport Finance Ltd, facilitates our activities in the important Japanese aviation market through its Tokyo branch. Here, we can structure and arrange equity for the Japanese Operating Lease (JOL).
Our Aviation Investment Management acts as the iinvestment consultant and asset manager to the Deucalion Aviation Funds, which consist of a series of actively managed closed-end funds. These funds act as the investment vehicles through which institutional investors and DVB together invest equity in aviation assets. Through these fund management activities, DVB is leveraging its aviation banking, aviation asset management and aviation research knowledge and expertise to provide investors with the opportunity to take equity risk in aviation assets.
The funds are principally focused on the acquisition of physical aircraft and engine assets, typically subject to long-term operating leases. From time to time the funds also invest in aircraft and engine disassembly project, airline equities, passenger-to-cargo conversions, secured aircraft bonds and mezzanine loan investments
Our senior investment managers responsible for sourcing and managing aviation investments and assets are based in London, New York and Singapore.
Aviation Asset Management (AAM)
Our Aviation Asset Management team is an integral part of our aviation platform that provides the full range of asset management services – third-party aircraft remarketing, lease management, and technical and general consultancy services – to airlines, lessors, investors, bondholders and financial institutions. Our clients receive services either as a fully packaged solution or on a standalone basis to best suit their needs.
Our professionals located in London, New York and Singapore possess detailed market knowledge and established industry relationships and reputation. They have extensive experience in the commercial aviation environment, having previously worked for Original Equipment Manufacturers, (aircraft and aero engine) lessors as well as airlines. With over 90 aircraft under management and/or remarketing contracts for third parties, we are one of the key players in the aviation asset management arena.
The team also adds value to the Bank’s broader customer requirements, often playing an active role in the evaluation of asset exposures being contemplated by the financing teams, and as part of a transaction team mandated to perform an advisory project.
Our Aviation Financial Consultancy team specialises in providing advice to airlines, lessors and investors. We offer the complete range of financial advisory services including financing advice (commercial, export credit, pre-delivery funding), lease-versus-buy analysis, aircraft procurement advice, advice in relation to (and the execution of) sale-and-lease-back transactions, business plan and development strategy reviews and restructuring advice.
By providing our clients with an unbiased view and opinion, we add valuable and innovative perspectives to our clients’ projects or, more generally, to our clients’ balance sheets.
Our Aviation Financial Consultancy team is based in London and Singapore, and includes professionals with extensive banking, leasing and aviation backgrounds.
Risk Distribution & Loan Participations
Our Financial Institutions and Syndications team is globally responsible for DVB’s syndication activities and assists our Transport Finance and Investment Management business divisions in raising non-public market debt or equity.
One of Financial Institutions and Syndications' tasks is to find suitable bank partners to join us in our financing of transport assets – either on an underwritten or book-building basis. In sourcing liquidity in the form of mezzanine and equity, the team globally acts as central contact and co-ordination point for financial institutions such as banks, hedge funds, private equity funds, sovereign wealth funds, insurance companies, pension funds, and supranational funds.
The Financial Institutions and Syndications team operates out of London, but with respect to the North American market, the team works with DVB Capital Markets LLC in New York.
Corporate Finance Solutions
Our DVB Corporate Finance team provides transport finance clients with financing solutions and supports them in raising capital via public offerings and private placements of equity, debt securities and structured asset finance products. Specifically, DVB Corporate Finance offers solutions in the following areas:
- Mergers & Acquisitions (M&A), i.e. traditional sell-side and buy-side advisory, alongside divestitures, spin-offs, joint ventures, Management-Buy-Outs/Leveraged-Buy-Outs, privatisations, and valuation and fairness opinions
- Corporate Advisory, i.e. balance sheet optimisation, strategic alternatives assessment, restructurings, liquidation management, and deal negotiation support
- Equity & Debt Capital Markets, i.e. primary and follow-on equity offerings, private equity and debt placements, equity-linked products, mezzanine capital, preferred securities, convertible bonds, and high yield bonds – via public issues as well as private placements in accordance with rule 144A of the US Securities Act
- Structured Asset Finance, i.e. asset backed securities, charter monetisation, project bonds, receivables securitisation and aircraft enhanced equipment and trust certificates
The team operates via our New York, London, and Oslo offices. In the United States, it acts through DVB Capital Markets LLC, a broker/dealer registered with the Securities and Exchange Commission and regulated by the Financial Industry Regulatory Authority. DVB Capital Markets LLC has a Business Continuity Plan and will be available for all clients in case of an emergency. In Europe, the team acts through DVB Bank SE (London Branch), regulated by the Financial Conduct Authority, and through DVB Bank SE (Nordic Branch), regulated by Finanstilsynet.
Asset & Market Research
Our research capabilities further enhance our established expertise in the commercial aircraft market and provide unbiased asset analysis and recommendations for the benefit of aircraft operators and investors.
The main focus of our Aviation Research team is on the aviation equipment market and on aircraft technology. Its products range from preparing asset evaluation reports, to assisting the commercial teams with information and analyses about aircraft, aero engines and the aerospace market in general.
Our Airline Research & Analysis provides a range of unbiased air transport market and airline industry information and analysis. Its focus is on the commercial airline market, broken down by geographic region, industry sector and subsector. It also offers active consultancy, comparative analysis and due diligence protocols.
Both teams frequently present their findings during aviation conferences and in trade press articles.
By utilising these extensive in-house capabilities, we have become an expert in evaluating market risks and can assist clients in optimising equipment finance structures. Our advisory clients benefit from a cross-sector approach in which our research is utilised in conjunction with advisory projects.
AAM – Aircraft for sale/lease
1 x B737-800
Available: Dec 2016
1 x B747-400F
Available: Dec 2016
3 x A330-200
Available: Jan 2016, Jan 2017
1 x A330-300