Hong Kong > Asset finance
Asset finance
This section recognises firms active in aircraft and ship finance, acting for both borrowers and lenders.
Mayer Brown JSM boasts wide-ranging expertise in all types of asset finance, handled by highly respected partners Alastair MacAulay and Richard Stock. The practice advises HSBC on ship finance matters across the region, along with Bank of China, ANZ Bank, BNP Paribas, Cathay Pacific and Dragonair. The team advised Fortis Bank on the sale and leaseback financing of nearly 15,000 shipping containers valued at $75m. Clients report that ‘ Mayer Brown JSM are the best aviation lawyers I’ve come across’; they have ‘in-depth knowledge of shipping finance’ and ‘are proactive in finding practical solutions’.
Richards Butler in association with Reed Smith LLP harnesses a similar spread of experience in asset finance, and is on the Export Credit Agencies’ (ECA) panel. Emma Casdagli is ‘experienced in aircraft financing’, while Andrew Brown and Chris Tang handle shipping and mainstream finance. The practice acted for European ECAs on financing four A380s for Qantas, the first ECA financing of this type of aircraft, and for China Shipping Group on a $129m financing from Bank of China for two VLOC newbuildings. Clients say the team is ‘prompt’ and ‘can always provide solutions in structuring the deals’.
Baker & McKenzie has ‘a strong aircraft finance team - they always ensure a smooth delivery’. The practice is led by the ‘clever and experienced’ Andrew Lockhart in Hong Kong and Shanghai-based Harvey Lau, who ‘really understands what airlines need’. The team represented Shanghai Commercial Bank as equity investor in leveraged leases of two Boeing 777-300ER aircraft leased to Cathay Pacific, valued at HK$706m, and acted for Thai Airways on the expiry of a lease end purchase of a Boeing B747 worth $38.9m. Clients praise the team’s ‘extensive understanding of the industry’.
Clifford Chance’s asset finance practice is managed by consultant Paul Greenwell, with support from Simon Briscoe in Singapore. The practice has a niche in Japanese operating leases, and represents Air Hong Kong and Korean Air. The team advised BNP Paribas on a $750m export credit facility to finance the acquisition of A380s for Qantas.
Norton Rose Hong Kong has grown its reputation in asset finance through working for clients such as COSCO. Clients report that lawyers are ‘experienced in the shipping finance field’ and ‘the level of service is very high’. Stephen Begley acted for subsidiaries of CITIC Pacific on a $380m term loan facility for 12 bulk carriers, and for Société Générale on another $380m financing to Nanjing Tanker Corporation to construct four VLCCs in China. Former London chairman Paul Giles relocated, boosting expertise in aircraft finance. Clients include Air New Zealand and Singapore Airlines.
Despite initial misgivings from lenders about shipping boutique Ince & Co, lead partner David Beaves has succeeded in winning instructions from several high-profile banking clients, both international and local. Senior associate Gary Wong returned after three years in ship finance at Mayer Brown JSM.
Adrienne Showering leads the practice at Mallesons Stephen Jaques, which advised Allco on the acquisition, financing and leaseback of several Airbus A320 aircraft on behalf of an Indian low-cost carrier.
Stephenson Harwood & Lo, led by Mark Reed, hired associate Hongkai Zhou in Hong Kong, and aviation expert Paul Ng from Freshfields Bruckhaus Deringer to work in Singapore. The Hong Kong office handles ship finance, acting for the Export-Import Bank of China on loans of up to $1.5bn to APMM. The team is ‘very commercial - it is clear that they have in-depth knowledge of the shipping industry’.
White & Case draws on Tokyo, Beijing and Singapore to supplement its limited Hong Kong offering, led by projects partner Hallam Chow. The ‘very professional and very helpful’ aircraft practice represented HSH Nordbank in financing a Boeing B737-700 for China Eastern Airlines.