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Financing for leasing companies

Leasing companies rent out their aircraft to various airlines – often on a global scale. This model offers airlines a wealth of benefits, such as a high degree of flexibility: If demand grows, they can expand their fleet in the short term. Also, short-term leasing contracts allow them to continually operate a young, modern fleet – and thus save on fuel costs. As the leasing fleets do not have to be entered into balance sheets, the capital required remains low.


Catalyst for growth in the aviation sector

Over the last few years, leasing companies have been driving growth in the aviation sector. One out of every two aircraft will be operated on lease in the medium term. In the meantime, there are numerous companies emerging as financial service providers for airlines that satisfy growing demand for flight travel mainly from Asia and South America. To this end, we not only offer suitable and flexible financing structures, but also our experience and market presence.


Financing case AWAS: Eight new Airbus planes for a leasing company

One example of financing for leasing companies is a credit facility for AWAS Aviation Capital based in Dublin to purchase eight Airbus planes. AWAS is delivering the new A320-200 planes to VietJetAir, Aeroflot, Starflyer and Airblue, amongst other clients.

The leasing company AWAS is one of the world's ten largest operating lessors and a long-standing customer of KfW IPEX-Bank. AWAS has a fleet of more than 220 aircraft, which the company leases to almost 100 flag carriers and low-cost airlines across the globe.

KfW IPEX-Bank is using this ECA-covered financing to support the exports of European aircraft manufacturer Airbus. Export finance is part of KfW IPEX-Bank's core business.


AWAS financing at a glance:

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Project profile
  • Borrower: AWAS Aviation Capital
  • Subject of financing: eight A320-200 planes
Contribution of KfW IPEX-Bank
  • Euler Hermes agent, security trustee, lender
  • Loan facility: USD 325 million
  • Tenor: 12 years