Mitsubishi: Establishment of an aircraft leasing joint venture with Cheung Kong

Mitsubishi Corporation (“MC”), through its 100% subsidiary MC Aviation Partners (“MCAP”), has entered into an agreement with Cheung Kong (Holdings) Limited (“CK”) to newly establish a joint venture (“JV”) dedicated to aircraft leasing.

CK will own 60% and MCAP 40% of the JV. Based on the agreement, MCAP will transfer to the JV a seed portfolio of 15 aircraft, out of the approximately 100 aircraft that it owns or manages. The JV will open offices in Hong Kong and Ireland, two key hub stations in aircraft lease and financing. The JV will also enter into a servicing agreement with MCAP, who will introduce/ evaluate/ recommend deals for the JV to purchase/ sale/ remarket aircraft assets. The JV will also raise capital from a syndication of financial institutions.

CK is the flagship of the Cheung Kong Group, the leading Hong Kong based multi-national conglomerate. CK has recently sought to diversify its investment into aircraft leasing business. Through its collaboration with MCAP in this JV, further increase of asset in this field is perceivable.

MC and MCAP are keen to leverage its experience and skills to raise external capital and support its further expansion in the aircraft leasing business as well as management of third party assets. With scale merit expected through this collaboration with CK, it is the intention for MC and MCAP to utilize its capital in an efficient manner, and strengthen its grip to pursue further growth in the field.