HCOB closes first primary aviation sector transaction for four of JLPS's A320s on lease

Hamburg Commercial Bank (HCOB) has successfully closed its first primary transaction in the aviation sector, providing a senior secured structured financing for JP Lease Products & Services (JLPS) for four mid-life A320s on lease to a Latin American carrier. ""We launched the business in October 2023 from scratch and, having completed secondary transactions, have now closed our first primary transaction as we continue to grow our business,"" said HCOB Global Aviation head Richard Moody. Moody is an industry specialist with extensive structured finance and capital markets experience. He had joined HCOB from Cranfield Aerospace Solutions where he had served as chief investment officer. Prior to this role, Moody had served at Deutsche Bank for 15 years. There, he held a number of senior leadership roles in transportation and infrastructure financing. JLPS head of corporate finance Frederic Mireur commented: ""It was key for all parties to complete the four aircraft drawdowns just before the peak summer season of our airline client. HCOB worked fast and efficiently to commit long term debt capacity and to provide certainty of execution in a record time."" HCOB said its global aviation business arm is ""an important part of the bank's business diversification strategy"", with it providing structured asset-backed and corporate financing to players in the aviation industry. The business will also finance areas in the sector such as airport ground handling, flight trainings, gates, maintenance facilities, slots, and supply chain. It will also selectively invest in capital market products. JLPS largely provides aircraft operating leases under Japanese operating lease (JOL) and Japanese operating lease with call option (JOLCO).