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DVB Bank, Mitsubishi Corporation (UK) and ELF Corporation enter into new engine leasing venture

25-Mar-2010 8:08 AM

DVB Bank, Mitsubishi Corporation (UK) and Engine Lease Finance Corporation (ELF) announced (24-Mar-2010) the formation of a new JV, Deucalion MC Engine Leasing Limited, incorporated in Ireland, for the purpose of investing in commercial aircraft engines subject to leases with airlines worldwide. DVB and MCUK are the joint senior debt providers and Deucalion funds are managed by DVB's Group Investment Management team in London. MCUK and ELF are equity providers. The JV has completed its first portfolio acquisition, consisting of seven commercial aero engines which were acquired from ELF during Dec-2009 and Mar-2010, consisting of IAE V2500, CFM56-5/-7 and CF6-80 engine types on operating leases with carriers from Europe, the Middle East, Asia and the Americas. The leases range in term from one to four years and have a staggered maturity profile. ELF retains lease management and remarketing responsibility. Under the terms of the agreement, DVB's engine management subsidiary, TES Aviation, completed the pre-purchase due diligence on behalf of the joint venture partners. [more]