Stephenson Harwood advises Mirae on US$450 million financing
Stephenson Harwood (Singapore) Alliance has advised Mirae Asset Securities (HK) Limited on a US$450 million acquisition and financing of three Boeing 777 aircraft, on lease to China Airlines Limited. Mirae Asset Securities (HK) Limited is a member of Mirae Asset Daewoo, a major financial and asset management group in South Korea.
The aircraft were purchased by three Cayman Islands-incorporated special purpose vehicles and remain on lease to China Airlines following the acquisition. Two of the aircraft were acquired from ICBC Aviation Leasing Company Limited entities, and one from GECAS (GE Aviation Capital Services, Ltd.).
The deal was financed using a combination of senior and junior funding. KEB Hana Bank, Kookmin Bank, Industrial Bank of Korea, Shinhan Bank, Woori Bank, NongHyup Bank and other Korean banks provided senior financing for the aircraft, while junior financing was provided by certain other investors.
This continues Mirae Asset Daewoo’s investment into the aviation financing market, as a consortium of Mirae Asset Daewoo and Hyundai Development Company was recently named in November as the preferred buyer of a 31 per cent stake in Asiana Airlines.
The team comprised Singapore-based partner, Saugata Mukherjee, of counsel Michelle Runagall-Orlić and associate Jason Quah. Bae, Kim & Lee acted as Korean counsel to Mirae.
