The US Jobs Creation Act was identified at a recent European aviation finance conference as being a key locational advantage of Dublin, with new companies such as CIT attracted to Dublin as a result. The conference also heard about how Aviareto is strengthening Ireland’s reputation as a world class centre for aircraft financing and leasing companies, KENNEDY O’BRIEN reports.

The imminent enactment of the Convention and Protocol 2001, which will facilitate the efficient financing of mobile equipment, will have a significant impact on the international aviation finance industry. Ireland is set to benefit from this, as it has been chosen to be the host jurisdiction of the first aircraft equipment registry, run by ‘Aviareto’, writes CATHERINE DUFFY in this update of developments in the sector.

The establishment by CIT Group plc, the US commercial and consumer finance company, of a Dublin based aviation finance operation, CIT Aerospace International, may be followed by the arrival of additional companies into the sector in Ireland. According to Conor O’Brien, a tax partner with KPMG, ‘There is still a lot of interest in the sector from overseas, and a number of projects may be on the way’.

With three dedicated financial institutions – Bank of Ireland, AIB and Lombard Global Finance - now offering ship financing in Ireland, HELEN NOBLE writes that this is a good indicator that Ireland is starting to capitalise on the maritime business. The future outlook is positive, she says, with the proposed Irish Ship Register and the American Jobs Creation Act, both offering opportunity for the sector. However, she adds that further fiscal or finance driven incentives are required if Ireland is going to experience the same type of success, as it has in other sectors such as aircraft finance.

As a division of the international investment banking and asset management firm, Babcock & Brown’s Dublin operation focuses on cross-border financing for aircraft, rail, power and other assets as well as project finance writes COLM BARRINGTON.

The global aviation sector experienced a tough year in 2002 but Cian Dooley says good skills, good experience and perhaps a bit of good luck will bring rewards to those who are willing to look past the present and position themselves for the future. He says that Boeing’s decision to set up a European presence in Dublin last year has paid real dividends.

PAT O’BRIEN believes that the features that made Ireland an attractive location for aircraft financing projects before September 2001 still exist, and sees a more positive future for the industry.

The 11th Annual KPMG Leasing Tax Conference took place in the Burlington Hotel in Dublin on September 16 and 17. The conference explored the major issues affecting international leasing and asset-based financing markets, in the context of changing political, economic and regulatory environments.

Lombard Aviation Capital has beat off competition from six banks to win a Ryanair export credit mandate for eight Boeing 737-800s.

Bank of Ireland has moved into the international ship financing market and has conducted its first transaction, taking a $23 million slice of Bergesen, the Oslo-based shipping giant’s recent $800m multi-currency facility.

PJ Henehan and Gary O’Mahony examine the outlook for the shipping finance industry in Ireland and write that while recent initiatives have boosted the sector more innovation is required if Ireland is to be considered seriously by international shipping companies as a location of choice.