#USA #New York #MUFG #Aircastle #Aviation finance

MUFG Closes $600 Million Unsecured Term Loan

On June 13, 2025, Mitsubishi UFJ Financial Group (MUFG), one of the world's top ten financial groups, announced the successful closing of a significant $600 million unsecured term loan for Aircastle Limited and subsidiaries. Aircastle, recognized as a prominent player in aircraft leasing, plans to utilize these funds primarily for ensuring sufficient working capital for general corporate purposes, which includes aircraft acquisitions slated through April 2030.

MUFG played a critical role in this transaction as the Left Joint Lead Arranger and Administrative Agent, successfully securing participation from 18 notable banks in the facility. These collective efforts highlight the banking sector's confidence in Aircastle's market standing and operational capacity.

Roy Chandran, CFO of Aircastle, commented on the transaction, stating, "The success of this transaction once again highlights the banking markets' recognition of our market-leading franchise. The expanding relationships we've built with our banking partners is a strategic strength as we grow our portfolio of in-demand narrow-body aircraft." This insightful remark underscores the importance of collaborative relationships in fostering growth and stability in financial transactions.

The transaction's success was remarked upon by Benoist de Vimal, the Head of Origination Aviation for the Americas at MUFG, who stated, "We are proud to have led this facility for Aircastle. The unsecured term loan's success was illustrated by its oversubscription level." This indicates a strong demand for the loan, showcasing the confidence that investors place in Aircastle’s business model amid fluctuating market conditions.

Olivier Trauchessec, Head of Global Aviation at MUFG, added further insight by noting, "The transaction was executed at a time of heightened volatility, which is a testament to Aircastle's financial strength and showcases MUFG's ability to navigate different markets with its Aviation clients." This highlights MUFG’s skill in managing complex financial scenarios and the resilience of Aircastle in the global aviation market.

About MUFG

Mitsubishi UFJ Financial Group, Inc. (MUFG), based in Tokyo, has an extensive history of over 360 years and operates a vast network of about 2,000 locations across more than 40 countries. This financial giant employs approximately 140,000 individuals and provides diverse services such as commercial banking, trust banking, security, consumer finance, and asset management. MUFG strives to be the world’s most trusted financial group, facilitating financial solutions that cater to the evolving needs of its customers while ensuring sustainable growth within its operational framework. The group’s stock trades on the Tokyo, Nagoya, and New York stock exchanges, affirming its international credibility.

About Aircastle

Aircastle has positioned itself as a global leader in the secondary market of aircraft leasing. The company engages in acquiring, leasing, and selling commercial aircraft worldwide. As of February 2025, Aircastle boasts ownership and management of 274 aircraft, valued at a net book value of $7.9 billion, across a diverse portfolio of 77 lessees in 47 countries. The company remains committed to growing its fleet, particularly focusing on newer technology aircraft that emphasize efficiency and sustainability, providing optimal solutions for a global base of clients. For more detailed information about Aircastle’s operations, interested parties can visit their official website.

This financing arrangement not only underscores MUFG's robust position in the aviation finance sector but also highlights the strategic growth trajectory of Aircastle as it navigates the evolving demands of the global aviation market.