The word asset refers to assets that have the following features: physical assets, movable assets and very expensive assets. Asset finance techniques are mainly used to finance the acquisition of aircraft, ships or trains – and more rarely of some smaller assets like helicopters, containers or cranes. Asset finance structures are split between three different categories: mortgage loans, finance leases and operating leases. The acquisition of an asset by a lessor is generally financed via a special purpose vehicle (SPV). This SPV is financed by a mix of equity and debt. A Japanese operating lease with call option (JOLCO) is a type of lease that offers specific tax allowances to Japanese investors. A JOLCO is an extremely powerful financing tool. This chapter summarizes the various solutions that can be used to finance an asset. It presents a case study of Richard Branson and the Beginnings of Virgin Atlantic.
Definition of Asset Finance
Structured Finance ; 177-199
2021-04-12
23 pages
Article/Chapter (Book)
Electronic Resource
English
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