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.