Tokyo Century Corporation told regulators that ACG Aircraft Financing Ireland DAC, a wholly owned Irish special-purpose vehicle of its aircraft-leasing subsidiary Aviation Capital Group (ACG), signed an unsecured loan agreement worth $1,476.5mn on July 2, 2026. The five-year facility was arranged by DBS Bank and syndicated across 33 financial institutions in total, a lender group large enough to spread the exposure of one of the world's bigger aircraft-leasing books across a wide swath of global banks.
The loan carries no collateral. What it does carry is a set of financial covenants, and the filing is specific about where they land: not on AAFID, the Irish borrower entity, but on ACG, the California-based guarantor, measured on a consolidated basis at each quarter-end and fiscal year-end. That structure is standard for leasing-sector financing, where the operating company's asset base and cash generation matter more to lenders than the paperwork of a single-purpose funding shell.
| Covenant | Threshold |
|---|---|
| Interest coverage ratio | At least 1.5x |
| Consolidated net assets | At least $1.5bn |
| Unsecured assets vs. unsecured liabilities | At least 125% of unsecured liabilities |
The practical effect is that Tokyo Century's Newport Beach-based leasing unit now has a running financial scorecard attached to nearly $1.5bn of fresh debt. An interest coverage ratio below 1.5 times, a net asset base under $1.5bn, or an unsecured-asset cushion thinner than 125% of unsecured liabilities would each trip a covenant test on ACG's own books, not just AAFID's narrow accounts.
The filing does not disclose pricing, the individual allocations among the 33 lenders, or how the proceeds will be deployed within ACG's fleet financing plans. Tokyo Century's disclosure obligation here is narrow: Japan's Financial Instruments and Exchange Act requires an extraordinary report when a subsidiary takes on debt with attached financial covenants, and the filing sticks to exactly that scope. Investors watching Tokyo Century's aviation-leasing exposure now have a clear covenant floor to track against ACG's quarterly numbers, even without visibility into the loan's coupon or its use of proceeds.