By Ronnie Harui
Singapore Technologies Engineering Ltd. said Friday that the engine-leasing joint venture of its aerospace arm has agreed to sell 30 aircraft engines via a securitization structure to free up capital for investments.
The structure includes about US$257 million of fixed-rate notes offered in three tranches and the placement of equity notes, according to an exchange filing.
The company expects its JV to retain 10% of the equity notes, while an affiliate of Marubeni Corp. and one or more investors will purchase the balance.
The transaction consists of 30 aircraft engines that power primarily narrow-body aircraft leased to 13 airlines across 11 countries, with a weighted average remaining lease term of about six years, Singapore Technologies Engineering said.
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