Boeing Capital is exploring opportunities for Islamic finance in the aviation sector and the possibility of including aircraft finance in the Islamic sukuk market, in which an aircraft finance portfolio would be secured by an instrument known as the Enhanced Equipment Trust Certificate.
As a wholly owned Boeing subsidiary, Boeing Capital Corporation creates financing solutions for customers purchasing the company’s commercial airplane and defence products. As the company’s investment bank, it works closely with third-party financing sources that provide nearly all of the financing support required by Boeing customers. It also manages the company’s $3.5 billion portfolio of commercial jetliners.
Boeing Capital is continually strengthening its presence in the Middle East region, which is recognized as a high
-growth area for commercial aviation with increasing demand for aviation financing. It regularly organizes events in the Middle East that are designed to engage the region’s finance community. Since 2006, Boeing
Capital has hosted annual airline planning seminars for financiers in the Middle East, and its Middle East
aircraft financier and investor conference has become an annual event.
Sukuk have been used on a number of occasions to finance airlines and aircraft purchases.