MUFG to Acquire DVB Bank Aviation Finance Business

Mitsubishi UFJ Financial Group entered into an agreement with DVB Bank to purchase the latter’s Aviation Finance division. Though the financial terms were not disclosed, the deal is expected to close in the second half of 2019.

The aviation financing business of Germany-based DVB Bank arranges and provides finance for aircraft such as narrowbody, widebody and other passenger and freighter aircraft. It also offers tailor-made financing solutions to clients.

Per the agreement, the entire client lending portfolio (nearly €5.6 billion ($6.3455 billion) as of June 2018) will be transferred to MUFG Bank and BOT Lease, MUFG Bank’s affiliate.

Further, the deal will incorporate the acquisition of DVB’s Aviation Investment Management and Asset Management businesses, which will be transferred to a newly established subsidiary of BOT Lease.

Masato Miyachi, Mitsubishi’s senior managing corporate executive, expects the company to benefit from the deal as he finds the aviation finance industry gaining steam.

“This acquisition is expected to enhance our global CIB business platform in terms of higher returns, portfolio diversification and solution offering to our clients” he said.

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
Susie Angelucci
Advertising: 484.459.3016

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.