News Release


Acquisition of Aircraft Leasing Business from The Royal Bank of Scotland Group plc(1/1)

January 17th, 2012

 

Sumitomo Mitsui Financial Group, Inc.(Code: 8316)                         

Sumitomo Mitsui Finance and Leasing Company, Limited.

Sumitomo Mitsui Banking Corporation

Sumitomo Corporation (Code: 8053)

 

 

Acquisition of Aircraft Leasing Business from The Royal Bank of Scotland Group plc

 

Sumitomo Mitsui Banking Corporation (SMBC; President: Takeshi Kunibe) and Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL; President: Yoshinori Kawamura), both both of which are subsidiaries of Sumitomo Mitsui Financial Group, Inc. (SMFG; President: Koichi Miyata), and Sumitomo Corporation (SC; President and CEO: Susumu Kato) have reached an agreement with The Royal Bank of Scotland Group plc (RBS; Group Chief Executive: Stephen Hester) on anthe acquisition of itsRBSfs aircraft leasing business, subject to regulatory approval and clearances and clearance by relevant regulatory authorities.

 

In DecemberAugust 2008, SMFL and SC established a company, SMFL Aircraft Capital Corporation B.V., to jointly launch and develop an aircraft leasing business as part of the strategic partnership between SMFG and SC, and have been vigorously expandinged thise business thereafter.

 

The aircraft leasing industry anticipates that expects demand for commercial aircrafts to continkeep its momentum of steady and strong growth, driven ue to grow steadily underpinned by the increasing volume of air travelers on the back of backed by the growth of emerging markets, economic expansion of developing regions, especially in Asia, and the rapid growth of low cost carrierscareers (LCLCs). The acquisition of RBSfs aircraft leasing unit, the fourth largest player in the world in terms of book value, We aim to will enable SMFG and SC capture the growing demand for new aircrafts in the emerging markets such as Asian countries to further expand and develop the business in Asia and other emerging market as the new unit cooperates with the existing aircraft leasing unit through the acquisition of RBSfs aircraft leasing operations,, the fourth largest player in the industry in terms of book value in the world,, and  its . joint operation together with the existing business.

 

Furthermore, the consortium will explore stable long-term funding sources for this acquisition, including funding supports by export credit agencies and government-affiliated financial institutions of various countries such as The Japan Bank for International Cooperation, for this transaction to alleviate the burden of external funding needs in light of uncertainties of the current uncertain financial market climate.

 

Both groups,  of SMFG and SC, will continue their concerted efforts to further reinforce our strength of thisstrengthen the aircraft leasing business and offer higher-value-added financial services to the airline industry and aircraft manufacturers in both domestic and foreign markets by leveraging their the advantages that both group,  have such as a sound financial positions, ability to provide capabilities of providing sophisticated financial solutions,, broad global client base, and advanced risk management practices.  

 

› Overview of the business to acquire

(USD Mio) 

Business name

RBS Aviation Capital

Head office location

Dublin, Ireland

Business locations

Ireland, the U.K., China, etc.

Incorporation

2001

Primary Bbusiness

Aircraft Leasing

Total Aassets(*)

Approx. USD 7,2007.2 billion

Ownership Ppercentage

icurrentj

RBS 100%

Planned Oownership Ppercentages

iafter acquisitionj

N  SMFL, the joint venture business of both groups, is to be athe main investor (over 50%)

N  SMFG group will eventually holdhaves, directly and indirectly, approx.  60-70% of ownership and SC group will hold have the rest ofremaining approx. 30-40% ownership.

N  The detailed shareholding structure is to be determined based upon further discussion.

(*) as of June 30, 2011

› Overview of the principal existing joint venture business

(1) Company name                                   F   SMFL Aircraft Capital Corporation B.V.

(2) Location                                            F  Netherlands

(2) Location                                             F   Netherlands

(3) Date of incorporation                          F   December 1, 2008

(4) Primary business                                 F   Aircraft operating leasing

(5) Shareholders & shareholding ratio       F   SMFL 60%,  SC 40%

 

(5) Shareholder & shareholding ratio        F  SMFL 60“,  SC 40“

 

(Contacts for inquiries)

SMFG

Public Relations Department

Hattori

+81-3-4333-3680

SMFL

Corporate Planning Department

Nihei

+81-3-3515-1315

SMBC

Public Relations Department

Hattori

+81-3-4333-3680

SC

Corporate Communications Department

Asada

+81-3-5166-4168

 

End of Document




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