Securitisation can be viewed as a financing tool or a mechanism for selling aircraft lease portfolios. Since the 1990s aircraft asset-backed securitisation has become a common financial practice. While securitisation has thrived in the US and Europe, the securitisation market for Asian issuers remained undeveloped until the first Asian aircraft securitisation took place in 2015. Will securitisation gradually become a dominant investment tool in the Asia-Pacific aviation industry?
As the aviation finance market continues to evolve, combined with continued favourable interest rates, aircraft asset-backed securitisation is becoming increasingly attractive as an investment option for financing portfolios of leases and loans relating to aircraft and aircraft engines.
Aircraft securitisation involves the creation of special purpose vehicles (SPVs) in which aircraft are sold as a package by an aircraft leasing company, financed through the issuance of debt instruments. Securitisation enjoys rising popularity because it allows operating lessors to diversify risk and gain exposure to new lenders and investors but – does it bring benefits without any drawback?
This one-hour webinar will bring together industry professionals to examine the transaction structure of aircraft asset-backed securitisations, discuss the corresponding benefits and concerns and identify the associated business opportunities.
Key discussion questions:
- Would further aircraft lease securitisation activity be a sensible choice for Asian aircraft leasing companies?
- How does asset composition, so the inclusion of new, mid-life and older aircraft, and commercial and regional aircraft affect securitisation transaction execution?
- What are the legal concerns when we structure securitisation transactions in Asia? Specifically, how would risk retention rules facilitate the transactions?
