Daiwa Securities Group Inc. will take an equity stake in Airborne Capital and expand their partnership in the aircraft leasing sector.
Daiwa Securities Group Inc. will acquire common shares in Airborne Capital from existing shareholders and also purchase subordinated bonds issued by Airborne Capital. While its voting rights ratio will initially be 10%, it will also acquire subscription rights to shares that, at the discretion of Daiwa Securities Group Inc., can raise this ratio to 20%. Daiwa will also dispatch a director to the company.
The aircraft leasing market is on an expansionary trend, driven by the growing importance of diversified investments in light of persistent inflation and changes in interest rate levels. It is increasingly popular as an investment product that can be expected to generate rental income while maintaining asset value.
Airborne Capital is an aircraft leasing company headquartered in Ireland. It has offices in seven locations worldwide and does business with more than 200 airlines and aircraft leasing companies. In January 2025, the two companies established a joint venture, Daiwa Airborne, which structures and manages aircraft operating leases for investors in Japan.
In January this year, the two companies, together with Mercuria Investment, announced that the three parties would jointly establish and manage an open-ended aircraft fund. The fund is targeting asset size of around 150 billion yen, with financial institutions and pension funds as its main investors, and the Development Bank of Japan set to participate as an anchor investor during the fund launch period.
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