By Park Hyong-ki
KEB Hana Bank has forged a strategic alliance with Netherlands-based Arena Aviation Capital in commercial aircraft leasing and financing, the bank said Sunday.
Under the partnership, KEB Hana will be able to introduce new airplanes for lease and management here through Arena Aviation, an aircraft investment management service provider.
They said they have made a deal to launch aircraft leasing programs worth $1 billion, the bank added.
Also, KEB Hana Bank will invest in shares of Arena Aviation and become one of the latter’s shareholders this year. The lender did not specify how much Arena shares it will acquire.
The two companies will seek to enter Japan’s aircraft investment management market through KEB Hana’s Tokyo branch.
Established in 2013, Arena Aviation was founded by CEO and Managing Director Patrick Den Elzen and his partners, who have more than 20 years of experience in aviation leading and management. Den Elzen was a former chief trading officer of AerCap, Ireland-based aircraft leasing company.
Arena Aviation has leased and managed 60 commercial jets, while KEB Hana has sealed 25 deals in aviation leasing since the bank started the business about three years ago, the bank noted.
Arena’s clients include Air Asia, Jet Airways and Volaris.
With the partnership, KEB Hana Bank will continue to seek opportunities in aircraft leasing abroad, and diversify our business portfolio,” KEB Hana Bank CEO Ji Sung-kyoo said in a press statement.
To this end, the two companies will run joint marketing campaigns to promote their business via aviation forums both domestically and abroad, it added.
Arena is a full-service Aircraft Investment Management company focusing on the complete life cycle of acquiring and leasing used commercial aviation assets, servicing investment and airline customers worldwide and providing services including the origination, financing, risk management, and administration (finance/accounting and legal) of commercial aviation assets. Arena also provides pre-packaged tailor-made solutions for airline customers for their mid and end-of-life assets. Arena today manages 30 aircraft leased to airlines worldwide for customers in Europe, North America, Africa and Asia.