Structuring and sale of products backed by high-quality assets such as aircraft and vessels

「Notice Regarding the Transfer of Aircraft and Other Assets Held for Sale (Aircraft Engine)」

「当社が、航空機用エンジンを対象とするオペレーティング・リース事業ファンド（JOL）商品として組成及び販売を行うために一時的に保有していた航空機用エンジンを投資家に出資いただく民法上の組合（任意組合）に譲渡するためです。」

「ＳＢＩリーシ: Notice Regarding an Advance Investment in an Operating Lease Business Fund」

「In forming products, we worked with leading arrangers such as BNP Paribas and the SBI Shinsei Bank group to form vessel JOLCO products for high-quality shipping companies, aircraft JOLCO products for Emirates and JOL products for Air France, while seeking to minimize investment risks, particularly credit risk, and focusing on expanding an attractive product lineup. We also worked on forming, proposing and selling JOL products that accurately captured customer needs, and sold a cumulative total of 8 aircraft as initially planned.」

「Against this domestic and international backdrop, we focused on forming attractive transactions combining JOLCO and JOL structures, aircraft and vessels, and shorter and longer lease terms, in order to meet diverse customer (investor) needs and provide partners with a stable supply of products throughout the year. As a result of securing a competitive, diverse and sufficient inventory of JOLCO products and pursuing proactive sales activities, JOLCO sales reached a record high for an interim consolidated accounting period. We also sold 3 JOL products, including 2 in the second quarter, through proposals and sales initiatives that accurately captured customer needs.」

「Through collaboration with leading arrangers such as BNP Paribas, a global leader in ship finance, and the SBI Shinsei Bank group, we focused on expanding attractive products for investors, including vessel JOLCO products for high-quality shipping companies, aircraft JOLCO products for Emirates, a major UAE airline, and JOL products for Delta Air Lines and Air France.」

「We strengthened the formation of vessel JOLCO transactions through collaboration with BNP Paribas, a global leader in ship finance. During the interim period, we formed 2 LNG-carrier transactions with Capital Product Partners, a major shipping company.」

「In this environment, we focused on expanding attractive products for investors by strengthening the formation of vessel JOLCO products for high-quality shipping companies through collaboration with BNP Paribas, a global leader in ship finance, and the SBI Shinsei Bank group, as well as forming JOL products for Delta Air Lines, a major North American airline, and Air France, a major European airline.」

「In this environment, within our group’s operating lease business, we formed 4 JOL products in the third quarter and focused on forming yen-denominated JOLCO products to address foreign-exchange risk, thereby securing product inventory to ensure a balanced lineup and stable supply. Although there were periods of significant foreign-exchange volatility, as in the previous year, during the third quarter we focused on selling yen-denominated JOLCO products and sold 1 JOL product involving a physical asset investment, increasing cumulative JOL product sales for the nine months to 5 aircraft, compared with 2 aircraft in the same period of the previous year.」

「In this environment, within our group’s operating lease business, sales of JOL products increased to 4 aircraft, compared with 2 aircraft in the same quarter of the previous year.」

「In this environment, within our group’s operating lease business, we focused on expanding our product lineup by forming JOL products for Delta Air Lines in North America and Air France in Europe, forming yen-denominated JOLCO products to address foreign-exchange risk, and forming products incorporating sustainability-linked loans under which loan interest rates fluctuate according to the achievement of CO2-emission targets by the airline serving as lessee.」

「Our group forms and sells funds that primarily invest in operating lease businesses involving aircraft, vessels and other assets.」

「Our group forms and sells attractive products backed by valuable, high-quality assets such as aircraft and vessels to investors, partners and borrowers (lessees), and works under the management philosophy of “The Challenge of Becoming a 100-Year Company” to contribute to your sustainable growth.」

「While continuing to monitor the effects of COVID-19 and the situation in Ukraine, our group forms and sells attractive products backed by valuable, high-quality assets such as aircraft and vessels to investors, partners and borrowers (lessees).」