Lessors have placed a flurry of orders with
rail and aircraft manufacturers as demand begins to strengthen in
the big ticket market.
An uplift in the number of big ticket
transactions in 2011 was predicted by one industry commentator who
expected especially high demand in Asia.
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US funder CIT Group has placed an order for 38
Boeing jets and purchase rights for an additional seven. The
aircrafts are Next-Generation 737 airplanes with deliveries into
2017, making this the largest order placed by any leasing company
for the 737-900ER range.
CIT head of transportation finance Jeff
Knittel said that the order proved that CIT was “back on the
offensive” after a complex restructuring process at the height of
the financial crisis.
Separately, German rolling stock leasing
company Railpool has ordered 42 locomotives from Bombardier and
Siemens to be delivered until mid-2013.
Bombardier is supplying 36 TRAXX locomotives
to the Munich-headquartered company, and Siemens is supplying
another six locomotives – the first order of Siemens’ newly
developed Vectron generation.
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By GlobalDataRailpool, a joint venture between German banks
HSH Nordbank and KfW IPEX-Bank, is investing in the locomotives to
meet a rising demand for leased locomotives.
Torsten Temp, responsible for shipping,
transport and energy at HSH Nordbank, said: “Demand for rail
vehicles from private rail operators is growing at a steady pace.
Railpool is able to satisfy this demand.”
This is the second locomotive order placed by
Railpool in the two years since it launched in 2008, bringing the
total number of the lessor’s locomotive pool to 100 units.
Alistair MacRae, a partner at law firm Norton
Rose, predicted that big ticket transactions will increase this
year, with Asia driving demand. He said: “As the world’s economies
begin to recover, demand for funding will once again increase, and
we will then find out whether the traditional bank lending markets
will step up to the plate in terms of meeting this demand, or
whether borrowers are forced to look at alternative sources of
finance, such as specialist funds and corporate bond issues.”
MacRae added that a revival was widely
expected after a weak 2010. “Bank lending has been heavily
restricted in the last couple of years as banks have sought to
rebuild their capital bases and, in many cases, withdraw from the
asset finance market altogether. Fortunately this coincided
with a general slump in world trade, and government backed projects
being put on hold, so the demand for big ticket financing also fell
away during this time.”
