Aviation Capital Group Closes $1.48 Billion Unsecured Loan

ACG Secures $1.48 Billion in Unsecured Financing

Aviation Capital Group (ACG) has successfully closed a $1.48 billion unsecured term loan facility, marking a significant milestone in the lessor’s ongoing capital strategy. The facility, which is syndicated across 33 global lenders, provides the company with substantial liquidity to support general corporate purposes and ongoing capital expenditures, according to the official press release. This financing arrangement, which matures in July 2031, underscores the lessor's ability to secure large-scale capital without pledging specific aircraft assets as collateral.

The transaction was coordinated by DBS Bank, reflecting the deepening influence of Asia-Pacific (APAC) financial institutions in the global aircraft leasing market. As of early 2026, ACG manages a comprehensive portfolio of approximately 500 owned, managed, and committed commercial aircraft, which are currently leased to roughly 90 airlines worldwide. The new facility allows the lessor to maintain a large pool of unencumbered assets, providing enhanced flexibility for fleet management and future growth.

The Shift Toward Unsecured Aviation Debt

This transaction follows a broader industry trend where major lessors increasingly prioritize unsecured borrowing to maintain operational agility. By securing capital at the corporate level, firms like ACG can avoid the administrative and legal complexities associated with asset-backed financing for every individual transaction. This strategy is supported by the company’s status as a wholly owned subsidiary of Tokyo Century Corporation, which provides a robust foundation for its credit profile.

Eric Blau, Senior Vice President, Treasurer and Head of Capital Markets at ACG, noted that the successful closing of the facility highlights the strong support the lessor receives from its international banking partners. The participation of 33 lenders in this syndication demonstrates a high level of confidence in the aviation finance sector, particularly as lessors continue to scale their fleets to meet rising global travel demand.

Historical Context and Precedents

ACG has actively managed its liquidity position through several major debt initiatives throughout 2026. In June 2026, the company successfully extended its $3.1 billion senior unsecured revolving credit facility with 24 financial institutions through June 2030. This followed a strategic move in January 2023, when the company secured dual $600 million unsecured term loans, including participation from the Japan Bank for International Cooperation. These precedents illustrate a consistent strategy of tapping diverse international banking syndicates to fund fleet expansion and corporate operations.

Regulatory and Corporate Structure

The borrowing entity for this transaction, ACG Aircraft Financing Ireland DAC (Designated Activity Company), operates under the legal framework of the Irish Companies Registration Office. This structure is a standard practice in the global aviation industry, allowing lessors to utilize Ireland’s specialized legal and tax framework to manage complex international leasing operations efficiently. The use of a DAC ensures that the financing aligns with international corporate governance standards while facilitating the seamless movement of capital across global jurisdictions.

What Comes Next for ACG Liquidity

With the $1.48 billion facility now closed, the focus shifts toward the deployment of these funds into new aircraft deliveries and working capital requirements. The company is expected to continue its strategy of maintaining deep pools of unencumbered liquidity as it navigates the 2026-2031 period. The maturity of this term loan in July 2031 provides the company with a stable, long-term capital runway, enabling management to execute fleet renewal programs and respond to market opportunities without immediate pressure on its asset-backed credit lines.

Why This Matters for the Leasing Market

For the broader aircraft leasing industry, ACG’s successful syndication serves as a key indicator of market health and lender appetite. The ability to assemble a 33-member syndicate demonstrates that institutional investors remain committed to the aviation sector despite macroeconomic volatility. Furthermore, the prominence of APAC-based lenders in this deal signals that the center of gravity for aviation finance continues to shift, with regional institutions playing an increasingly central role in the capital structures of global lessors.