Advising on the establishment of SMBC Aviation Capital's GAEL II Fund

SMBC Aviation Capital (SMBC AC), one of the world's leading aircraft lessors, will act as servicer in respect of GAEL II and its aviation investments.

GAEL II is a closed-end fund that has raised equity capital from 14 Japanese institutional investors to acquire a portfolio of eight aircraft from SMBC AC, giving investors an opportunity to deploy capital into stable and predictable returns backed by a high-quality portfolio of aircraft serviced by SMBC AC.

We advised on the Cayman Islands and Irish law aspects of the fund establishment, as well as the debt financing secured for GAEL II. We are also assisting with the transfer and novation of the aircraft – on lease to a range of international airlines – from SMBC AC to GAEL II.

Our Cayman Islands legal team was led by Hong Kong based partners James Gaden and Wei Ching Teo (Investment Funds) and Kristen Kwok (Asset Finance) with assistance from senior counsel Gareth Lond based in Dubai.

Our Irish legal team was led by partners Matt Hedigan and Killian McSharry (Asset Finance) and Eoin Ryan (Corporate) with assistance from associates Naomi Ní Shé, Tristan Meyer and trainee Conor McCabe.

Commenting on the deal, Wei Ching said: 'We're delighted to have assisted SMBC Aviation Capital on this milestone transaction.'

Matt added: 'Our work on establishment of GAEL II highlights our ability to provide specialist multi-disciplinary expertise across our global network to world's leading institutions active in the aviation market.'

We worked on this deal alongside Clifford Chance LLP as English law advisors to GAEL II.

Our global Asset Finance team have extensive specialist knowledge and experience advising on complex asset finance matters. We work with the world's leading financial institutions, investors, arrangers, airlines, lessors and shipping companies active in the asset finance sector on the most innovative asset finance transactions as exemplified by our work on GAEL II.