South Korean lender KB Kookmin Bank has provided up to 22.65 billion won ($20 million) in two foreign aircraft equity funds specializing in investing in global aircraft makers.
KB Kookmin Bank will spend $10 million each in two aircraft finance funds, Tamweel Aviation Finance ll and Cedar Aviation Finance, run by Dubai-based aircraft leasing and financing services firm Novus Aviation Capital.
Novus Aviation noted that the two funds will attract $400 million and $300 million, respectively. Not only aircraft manufacturers Airbus and Boeing but also global financial institutions are taking part in the funds as investors.
KB Kookmin Bank said it expects to create a synergy effect as it directly takes part in the fund as an investor and KB Securities will sell the fund in the domestic market.