ARTICLE
1 February 2022

Trend Away From Commercial Financings In Aviation Market

W
Walkers

Contributor

Walkers is a leading international law firm which advises on the laws of Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, Ireland and Jersey. From our 10 offices, we provide legal, corporate and fiduciary services to global corporations, financial institutions, capital markets participants and investment fund managers.
The refinancing activity is particularly significant in the European and Asian markets where BVI companies remain popular holding vehicles and are being deployed as guarantors and security providers.
British Virgin Islands Finance and Banking
We are seeing an increase in private / corporate jet financings as those with the means to do so move away from commercial flights in the wake of the pandemic and even moreso given that there doesn't appear to be a clear end in sight. Invariably these financings utilise a BVI borrower in the structure with the aircraft being beneficially owned by the BVI company and ultimately registered in Bermuda, the Cayman Islands or other markets in the Americas. Given the state of play in the shipping industry, we are also seeing an uptick in vessel refinancings involving large cargo vessels which is not unexpected as we continue to witness unprecedented supply chain interruptions. The refinancing activity is particularly significant in the European and Asian markets where BVI companies remain popular holding vehicles and are being deployed as guarantors and security providers.

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