Meritz Securities Co. has concluded an aircraft deal worth some 600 billion won (US$533 million) in two years after it jointly received a total of 1 trillion won (US$889 million) worth of aircraft deal with Japan’s Mizuho Securities Co. at the end of 2016
The South Korean brokerage firm announced on Dec. 12 that it has succeeded in aircraft investment worth US$540 million (610 billion won). Meritz Securities has acquired 18 used airplanes from Dubai Aerospace Enterprise (DAE) Capital and will rent them to airliners and receive rent fees.
DAE Capital is the world’s sixth-largest aircraft lessor headquartered in Dubai. It owned 349 airplanes as of the end of 2017. Meritz Securities, which participates in as an equity note (E-Note) investor, has already sold down more than 80 percent of the investments to domestic institutional investors. For the latest deal, the company promoted a public sale of senior asset backed securities (ABS) in the U.S. market. The ABS issuance will be completed on Dec. 14.
An official from Meritz Securities said, “The nation’s major airliners, such as Korean Air Lines Co. and Asiana Airlines Inc., lease planes from DAE Capital. The planes from the latest portfolio deal are 9.2 years old on average with a remaining lease term of about 4.4 years.”
Previously, Meritz Securities bought 20 airplanes from GE Capital Aviation Services (GECAS) via a joint aviation fund with Mizuho Securities. The planes are being rented by major airliners around the world,