Asset Finance for Aviation & Maritime

by Tahmidur Remura Wahid | Sep 5, 2025 | Uncategorized | 0 comments

Asset Finance for Aviation & Maritime in Bangladesh — A TRW Law Firm Guide

Prepared by Tahmidur Remura Wahid (TRW) Law Firm — Bangladesh’s cross-border Banking & Finance and Projects team with desks in Dhaka, London, and Dubai.

Executive summary

Asset finance for aircraft and vessels has evolved from niche sponsor deals to a mainstream, risk-managed instrument set for airlines, cargo operators, exporters, shipowners, charterers, logistics companies, EPC contractors, and financiers. In Bangladesh, aviation and maritime asset finance sits at the intersection of: (i) foreign-exchange and banking permissions; (ii) asset-level registries and perfection; (iii) tax and customs impacts (import duties, VAT, WHT); (iv) insurance, operations, and maintenance covenants; and (v) enforcement (repossession, arrest, and sale). For cross-border transactions routed through London or Dubai, there are additional overlays on governing law, security agency/ trust structures, and netting/close-out certainty, as well as Shariah-compliant options embraced by GCC lenders and funds.

This guide distils the practical playbook we deploy for clients: how to structure, document, and close aviation and maritime asset finance that touches Bangladesh — while staying aligned with Bangladesh Bank (BB) permissions, port and aviation authority practices, corporate charges at the Registrar of Joint Stock Companies (RJSC), and market realities on servicing, maintenance, and re-delivery. We also flag what foreign companies should be careful about, and how a Dhaka-London-Dubai triangulation can de-risk enforcement, tax, and covenant performance.

If you remember only five things:

■ Build your transaction on clear regulatory permissions for foreign debt/leases and payments of rentals, interest, and fees; align with banking documentation and your AD bank from day one. See our overview on Regulatory (Bangladesh Bank).
■ Perfect security on two rails: (1) asset-level (aircraft/engine or ship/maritime mortgage, insurances, earnings) and (2) corporate-level (RJSC charges, share pledges, account charges). Coordinate timelines to avoid perfection gaps. See Secured Lending & Syndication.
■ Model tax & customs early (WHT on lease rentals/interest, VAT on import, stamp duties) and draft gross-up/indemnity language accordingly. See Loan Documentation.
■ Embed operational covenants that local teams can actually meet (MRO, airworthiness/class, insurance placements, bunker/port dues management); and a default-to-recovery pathway that is realistic for Dhaka, Chattogram, and Mongla.
■ For cross-border resilience, place your master documents under English law (London) or DIFC/ADGM law (Dubai) with Bangladesh-facing novations/consents for local compliance — then harmonise with BB approvals and RJSC filings.

1) The basics: what “asset finance” means in aviation and maritime

Aviation

Operating lease: lessor owns the aircraft/engine; lessee pays rentals; off-balance-sheet/lease accounting effects depend on IFRS treatment; return conditions critical.
Finance lease: lessee economic ownership and residual risk; often with a purchase option and stronger maintenance obligations.
Secured loan / mortgage: lender advances funds; borrower grants aircraft/engine mortgage, assignment of insurances, lease/earnings, maintenance reserves, and charges over bank accounts.
JOLCO / tax-driven variants: Japanese Operating Lease with Call Option, export-credit/agency-backed facilities, and other cross-border structures, often seated in English-law documentation.
Engine-only and spare parts finance: separate serialised assets; tracking and substitution mechanics are central.

Maritime

Ship mortgage financing: term loans secured by statutory ship mortgage, assignments of insurances and earnings, chartering covenants, class/flag undertakings.
Bareboat or time charter finance: lease-like economics; repossession and arrest pathways must be mapped to local port practice.
Construction finance: pre-delivery financing secured by builder’s refunds, refund guarantees, or progress-payment security.
Working capital against receivables/freight: pledges over freight, hire, demurrage and assignments of charterparty receivables.

Across both sectors, the critical path is the same: regulatory capacity → documentation & approvals → perfection & filings → delivery & acceptance → operations → monitoring → enforcement options.

2) Regulatory perimeter in Bangladesh: the gating items

Foreign currency and cross-border payments

Lease rentals, interest, principal, and fees crossing borders must fit within Bangladesh Bank permissions (including foreign borrowing and remittance rules) and route through Authorised Dealer (AD) banks. Payment schedules and currencies should be settled with the AD bank very early. For banking interaction and approvals logic, see Regulatory (Bangladesh Bank).

Corporate authority and RJSC filings

Board/shareholder approvals for borrowing/disposing/encumbering significant assets must be aligned with the Articles of Association.
Charges over company assets require registration with the RJSC within the prescribed timeframes; failure risks subordination to subsequent secured creditors or insolvency officials.

Sector regulators and registries

Aviation: Civil aviation authority processes for registration, nationality marks, airworthiness, and de-registration consents. IDERA-like arrangements (if any) or lessor consents for quick de-registration should be addressed contractually where treaty support is not certain.
Maritime: Ship registry entries, mortgages, priority notices, and port state control interaction; practical arrest and sale timelines at Chattogram/Mongla must be reflected in the enforcement plan.

Customs, duties, and VAT

Aircraft, engines, vessels, and parts may trigger import duty, VAT, or temporary admission regimes depending on the financing and operating model (import vs. wet lease, long-term vs. short-term). The economics of the facility can change materially if duty relief is unavailable.

Insurance

Hull & Machinery (H\&M), War, P\&I (for ships), and liability cover must be maintained with approved insurers. If local placement or co-insurance is expected, we incorporate this in the covenants and loss-payee clauses; lenders typically require assignment of insurances and broker letters of undertaking.

Sanctions, AML/CFT, and KYC

Aviation and shipping are sanctions-sensitive sectors. Cargo, charterers, ports, routes, and counterparties should be screened continuously. Your covenants and representations & warranties need to reflect regime updates without over-penalising normal operations.

3) Structuring options that work in Bangladesh (with London & Dubai overlays)

3.1 Operating lease (aviation & engines)

When off-balance-sheet or flexibility is key, an operating lease remains the industry workhorse.

Core covenants we deploy:

Usage & Return Conditions: flight hour/cycle limits, LLP (“life limited parts”) trace, EASA/FAA/EU/CAAB equivalent maintenance standards, records in digital form, and redelivery locations acceptable to lessors.
Maintenance reserves & security deposits: reserve mechanics compatible with local cash controls; consider offshore reserve accounts if permitted.
De-registration & export: lessor/financier protections to rapidly de-register and export the aircraft in a default; if treaty support is unclear, we rely on irrevocable consents and power-of-attorney mechanics, carefully drafted for local enforceability.
Insurance: Lessor/financier named as additional insured and loss payee; broker undertakings; cut-through clauses.

London/Dubai context: Seat master lease under English law (LCIA/ICC arbitration or English courts) or DIFC/ADGM law with Bangladeshi local law confirmations for recognition, and coordinate with the AD bank for rental remittances.

3.2 Finance lease

When long-term control and residual value matters, a finance lease with a purchase option is common.

Key points:

Title & risk: clear allocation of economic ownership; tax consequences (depreciation) vary by jurisdiction.
Balloon or purchase option: priced to match expected residual value and tax outcomes.
Perfection: if local title is required, ensure RJSC filings for charges (if sub-leases or accounts are charged) and reflect asset registry entries (engine/airframe or ship).

Islamic variant: Ijarah (lease) or Ijarah Muntahia Bittamleek (lease-to-own) can be structured to mirror finance lease economics while meeting Shariah criteria. For Shariah-compliant approaches, see Islamic Finance.

3.3 Secured loan / mortgage finance

For airlines, shipowners, and logistics groups with balance-sheet capacity, a secured term loan often delivers the best rate.

Security package (aviation):

Aircraft/engine mortgage over serialised assets;
Assignment of insurances (H\&M, liability) and requisition compensation;
Assignment of lease/hire (if onward leased) and of maintenance reserves;
Account charges over collection and reserve accounts;
Share pledge over SPV owner (if asset-owning SPV used).

Security package (maritime):

Statutory ship mortgage at the flag state;
Assignment of insurances & earnings;
Charterparty assignments;
General assignment of requisition/compensation;
Share pledge and earnings accounts.

Perfection roadmap:
(1) Asset-level registry filings (aircraft/ship) → (2) RJSC charge registration → (3) notices to lessees/charterers and insurers → (4) bank account charge controls. Build a closing checklist with responsible parties and timestamps to avoid priority gaps.

Where to seat the documents: English-law facility & security with Bangladesh law opinions, or DIFC/ADGM law where Gulf lenders are involved. Local law notarial and stamping requirements must be timed with first drawdown. For drafting and syndication mechanics, see Secured Lending & Syndication and Loan Documentation.

3.4 Construction and pre-delivery finance (ships and aircraft)

Pre-delivery instalments secured against builder refunds, refund guarantees, and (for ships) a keel-laying → launch → delivery milestone framework.
Novation mechanics from builder to owner/SPV and onward to charterer/lessee.
Performance bonds and yard warranties aligned with insurance.
Title transfer moments mapped to import/customs planning.

3.5 Working-capital, MRO and spare-parts finance

Receivables finance against freight/hire or maintenance invoices, with notice of assignment to payers.
Parts pools and rotable spares facilities with robust tracking, substitution and inspection rights; a well-drafted chattel mortgage or fixed charge over high-value spares plus an inventory covenant.

4) Tax, customs, and cash: get these right upfront

Withholding tax (WHT) on rentals and interest

Cross-border lease rentals and interest may attract WHT in Bangladesh depending on the nature of the payment and the status of the payee. Build gross-up clauses and pricing cushions into term sheets, and align with expected treaty relief (where available).

VAT & import duties

Long-term import of aircraft, engines, and vessels can trigger import duty and VAT or qualify for relief based on operation (commercial use, temporary admission, or special regimes). Model both cash-on-import and deferred possibilities and reflect in conditions precedent.

Stamp duties

Finance and security documents may attract stamp duty if executed in or brought into Bangladesh; plan execution packages (split signing/escrow) to manage timing.

Banking and remittance mechanics

Payment flows must go through the AD bank with appropriate purpose codes and documentation. If a reserve account sits offshore, ensure the AD bank’s comfort and BB compliance.

Islamic tax considerations

Ijarah, Murabaha, or Ijara-wa-Iqtina shouldn’t suffer negative tax arbitrage compared to conventional structures if documented correctly; pricing and asset title paths must be clear. For Shariah structures, cross-check with Islamic Finance.

5) Risk & covenant engineering: making operations match finance

Aviation covenants that save deals in practice

Scheduled maintenance and minimum utilisation with carve-outs for AOG (aircraft on ground) events; MRO approvals and record-keeping accessible to financiers; ETOPS/route restrictions as needed.
Redelivery envelopes (hours, cycles, condition of LLPs, borescope inspections, cosmetic standards).
Export controls & sanctions: dynamically drafted to track policy changes; KYC refresh cycles aligned with lease anniversaries.

Maritime covenants that lower loss-given-default

Maintain class and flag; restrict bareboat chartering without consent; manage bunker suppliers and port dues to avoid secret maritime liens that prime the mortgage.
H\&M, War, P\&I insured values and loss-payee structures; collision/TFF (three-fourths) clauses monitored by the broker with undertakings to the mortgagee.
Trading limits and sanctioned ports restrictions; mandatory AIS tracking and reporting.

Cross-asset operational guardrails

Information covenants: monthly utilisation, MTM value ranges, technical reports, incident notices;
Financial covenants: minimum liquidity, DSCR/ICR; cross-default to key group debt;
Cure rights: voluntary deposits as cure for financial covenants; pre-agreed maintenance reserve top-ups.

6) Enforcement & restructuring: assume it, plan it

Aviation

Peaceful possession and voluntary surrender are fastest; if not, pursue de-registration and export with support from local counsel, lessor’s POA, and authority notifications.
Where court intervention is needed, your governing law and seat (English courts/LCIA/ICC or DIFC/ADGM) guide the merits; local recognition steps follow.
Interim measures: preservation orders, groundings, and injunctive relief to prevent dissipation of parts or records.

Maritime

Ship arrest through the admiralty jurisdiction at the relevant ports subject to procedural requirements; priority of maritime liens (crew wages, salvage, bunker suppliers) must be accounted for in recovery models.
Judicial sale processes determine net recovery and transfer of clean title to buyers; interim receiver/manager appointments may preserve value.

Restructuring & workout options

Rent deferrals, power-by-the-hour arrangements, partial redeliveries, substitution of engines/hulls, and sale & leaseback exits are common. For broader balance-sheet solutions, see Restructuring & Insolvency.

Documentation to enable quick action

Clear events of default, acceleration, termination, step-in, and self-help provisions; notices by email + courier; appointment of security agent with authority to act alone; intercreditor terms that allow majority action without hold-out risk.

7) Foreign companies: what to be careful about (a Dhaka-London-Dubai checklist)

Regulatory & payments
■ Confirm AD bank pathways for rentals, interest, principal, fees; build purpose codes and documentary packs; align with BB permissions early. See Regulatory (Bangladesh Bank).
■ If using offshore reserves/maintenance accounts, secure written comfort from your AD bank on inflows/outflows.

Perfection & priority
■ Do not rely only on asset registry filings; register corporate charges at RJSC and serve notices to charterers/lessees and insurers; control collection accounts.
■ Time filings to avoid priority gaps between delivery and mortgage registration.

Tax & pricing
■ Model WHT and VAT/duty before you lock pricing; embed gross-up and tax indemnities in the term sheet; make pricing contingent on agreed tax positions.
■ Align IFRS lease/loan accounting with Bangladesh tax computations to avoid P\&L/tax timing gaps.

Governing law & enforcement
■ Place master documents under English law (London) or DIFC/ADGM law (Dubai) for predictability; use arbitration with emergency relief or court jurisdiction with anti-suit protections; run local recognition playbooks in parallel.
■ Draft de-registration/export mechanics (aviation) and arrest/sale mechanics (maritime) that reflect local procedural realities.

Operational realities
■ Pick MRO and class/flag paths that Bangladeshi operators can actually maintain; impose AIS, ETOPS, route, and sanctions compliance reporting without paralyzing operations.
■ For maritime, install bunker/port-dues escrow or evidence systems to avoid accumulation of secret liens.

Islamic options
■ If your lender base includes GCC or Islamic windows, consider Ijarah, Murabaha, or Sukuk-like tranches; keep asset title, risk, and rent steps transparent to satisfy Shariah boards. See Islamic Finance.

8) Transaction blueprint: closing without surprises

Phase 1 — Feasibility & term sheet (Week 1–2)

Asset identification (MSN/serial numbers for aircraft/engines; IMO number for ships).
Technical due diligence (records, maintenance status, class/flag).
Regulatory feasibility with AD bank (rentals, interest, fees remittance; import/temporary admission).
Tax & duty memo (WHT, VAT/duty, stamp).
Agree governing law/seat (English or DIFC/ADGM), security agent, and intercreditor scaffold if multiple lenders.

Phase 2 — Documentation (Week 3–6)

Draft facility or lease; mortgage; assignments (insurances, earnings/leases); account charges; share pledges; quiet enjoyment letter (aviation) as needed.
Conditions precedent (CP) binder: corporate authorisations, KYC, insurance binders, technical status, regulatory approvals, RJSC filings roadmap, customs clearances.
Bangladesh law opinions and capacity opinions coordinated with local counsel; stamp & notarisation plan.

Phase 3 — Perfection & funding (Week 6–8)

Execute and (where needed) stamp documents; file asset-level mortgages; register RJSC charges; serve notices to insurers, charterers/lessees, and account banks.
Delivery & acceptance (aviation redelivery or new delivery; ship delivery protocol).
Disbursement through escrow with CP satisfaction and drawdown notices.

Phase 4 — Monitoring & compliance (post-close)

Monthly utilisation reporting; insurance certificates; technical reports; class/airworthiness confirmations; bank account sweeps.
Annual KYC refresh and sanctions screening; covenant testing (financial & operational).
Amendments & waivers protocol (who can approve; thresholds; fee schedule).

For the loan/CP machinery and standard financing covenants, see Loan Documentation and Secured Lending & Syndication.

9) Financing strategies that pair Bangladesh with London & Dubai

London (English law)

Deep leasing and loan market across operating lease, JOLCO, export-credit variants, and club/syndicated loans; tested documentation; predictable courts.
Use English law for facility, lease, security, and intercreditor agreements; set LCIA or ICC arbitration or English courts depending on counterparty profile.
Integrate Bangladesh-specific approvals and filings into conditions precedent; run dual-track recognition planning for enforcement.

Dubai (DIFC/ADGM law)

Gulf banks and funds favour DIFC/ADGM courts and law; lenders often deploy Islamic windows offering Ijarah/Istisna/Murabaha overlays for asset-heavy deals.
DIFC/ADGM provides modern security, netting, and security agency regimes; convenient for collateral account location.
Time-zone, travel ease, and cultural proximity to Dhaka make Dubai a practical middle-office for asset inspections and covenant monitoring.

Hybrid approach

Seat master documents in London; host security agent and accounts in DIFC; execute local Bangladesh filings and notices; centralise sanctions & KYC monitoring in Dubai with reporting up to London.
Where Islamic tranches sit alongside conventional debt, use a common terms agreement with parallel debt or agency to align enforcement.

10) Worked examples (illustrative)

A) Narrow-body aircraft operating lease for a Bangladeshi carrier

Structure: 6-year operating lease from an English-law lessor; rentals in USD; maintenance reserves into an offshore account with AD bank comfort letter.
Bangladesh steps: AD bank approvals for rental remittance; customs/VAT for long-term import; insurance placement with local co-insurance; RJSC filings for any corporate charges (if reserves or accounts are charged).
Risk guardrails: Redelivery conditions; de-registration/export consents; quiet enjoyment.
Outcome: Predictable capacity ramp without balance-sheet strain; re-marketing freedom for lessor.

B) Ship mortgage financing for a bulk carrier acquired by a Dhaka-based owner

Structure: 5-year term loan under English law; statutory mortgage at the flag; assignments of earnings and insurances; P\&I letter of undertaking; earnings account at a DIFC bank with sweep to lender.
Bangladesh steps: RJSC charge registration; AD bank comfort for debt service; sanctions/KYC program mapped to cargoes and charterers.
Risk guardrails: Trading limits; port dues/bunker evidence; arrest-ready document pack.
Outcome: Competitive pricing; strong security and predictable recourse.

C) Engine finance with quick-turn MRO cycles

Structure: Short-tenor finance lease of engines with substitution mechanics; serialised asset mortgage; MRO undertakings; records digitised and escrowed.
Bangladesh steps: AD bank permission for rentals; customs relief for temporary admission if applicable; local insurance endorsements.
Risk guardrails: Frequent usage reporting; variable maintenance reserve; quick default cure windows.
Outcome: Fast capacity restoration for airline with limited cash drain.

11) How TRW delivers: the cross-functional stack

Bangladesh regulatory & banking: AD bank engagement, remittance approvals, RJSC filings, customs/VAT/duty mapping, authority liaison for registry actions. See Regulatory (Bangladesh Bank).
Finance documents: English-law or DIFC/ADGM-law facility/lease/security with Bangladesh law overlays; intercreditor and security agency frameworks; perfection checklists. See Loan Documentation.
Syndication & club deals: lender packs, CP management, drawdown logistics, and portfolio-monitoring feeds. See Secured Lending & Syndication.
Islamic structuring: Ijarah, Istisna, Murabaha, and Sukuk-style components integrated with conventional tranches. See Islamic Finance.
Distress & workouts: PBH arrangements, rent deferrals, consensual redeliveries, arrest/de-registration; balance-sheet solutions. See Restructuring & Insolvency.
Trade flows & logistics: For cargo-linked financings, we dovetail with Trade Finance (LCs) and Project Finance where relevant.

12) Frequently asked questions (FAQ)

Q1: Can a foreign lessor/lender enforce in Bangladesh under English-law documents?
Yes — but expect local recognition or aid for execution steps. We pre-build a dual-track route: contractual remedies under English or DIFC/ADGM law plus local filings, notices, and procedural levers for de-registration (aviation) or arrest (maritime).

Q2: Are lease rentals and interest freely remittable?
They are remittable through AD banks when the structure complies with BB rules and documentary packs (contracts, invoices, utilisation, purpose codes) are in order. We front-load AD bank comfort to avoid post-closing friction.

Q3: How do we avoid secret maritime liens priming the ship mortgage?
Install operational discipline: evidence port dues, manage bunker supplier credit, and require no-lien undertakings where possible. Escrow arrangements and regular certifications reduce surprises.

Q4: What about engines and parts off-wing?
Use serialised mortgages, robust tracking, substitution protocols, and access to records; craft quiet-enjoyment and inspection rights that work for both airline and financier.

Q5: Can we do Islamic finance tranches?
Yes. Ijarah (aviation lease), Istisna (build/construct), and Murabaha (cost-plus on parts) sit comfortably alongside conventional debt under a common terms agreement. See Islamic Finance.

Q6: What timelines should we expect to close?
For a well-prepared borrower and seasoned lessor/lender, 6–10 weeks from term sheet to first drawdown is achievable: 2 weeks for feasibility, 3–4 weeks for documentation, and 1–2 weeks for perfection and funding. Add time for customs/duty optimisation if needed.

13) At-a-glance: red flags and how we neutralise them

■ Rental/interest remittance uncertainty: Front-load AD bank and BB alignments; mirror rental schedules with purpose codes and invoices.
■ Perfection gaps: Run asset registry and RJSC charge filings in lockstep; serve notices to insurers and charterers on day 1.
■ Tax cost blow-ups: Price gross-ups and indemnities into the term sheet; make closing conditional on agreed tax treatment.
■ Operational non-compliance: Draft covenants that match actual MRO/class capabilities in Bangladesh; avoid “paper-perfect but unworkable” terms.
■ Weak enforcement posture: Seat master documents in English or DIFC/ADGM law; draft self-help and step-in; prepare local arrest/de-registration playbooks in parallel.
■ Sanctions drift: Install live screening, contract triggers for policy updates, and transparent reporting duties.

14) Summary table — Aviation & Maritime Asset Finance: Bangladesh × London × Dubai

Topic	Bangladesh (Dhaka)	London (UK)	Dubai (UAE: DIFC/ADGM)
Regulatory & payments	AD bank channels for rentals/interest/fees; BB permissions; customs/VAT/duty on import/temporary admission.	Predictable payment rails; deep lessor/lender market; English-law documentation.	GCC lender access; supportive court systems; proximity for inspections and covenant monitoring.
Documentation & law	Local law filings and RJSC charges; local consents for registry actions.	English-law facility/lease/security; LCIA/ICC/English courts; seasoned intercreditors.	DIFC/ADGM law facilities/security; DFSA/FSRA framework; popular for Islamic windows.
Security & perfection	Asset registry (aircraft/ship) + RJSC charges + notices to insurers/charterers + account charges.	Security agent structures; offshore accounts; predictable priority rules.	Flexible security and parallel debt arrangements; collateral accounts in DIFC/ADGM.
Tax & duty	WHT on cross-border payments; VAT/duty at import; stamp duties.	Accounting-aligned tax; treaty network; no local VAT on foreign assets.	Corporate tax at federal level; Islamic finance familiarity; treaty coverage varies.
Operations & insurance	MRO/class/flag aligned to local capability; H\&M/War/P\&I and liability with local endorsements.	Global broker platforms; extended coverage offerings.	Regional broker access; co-insurance with Middle East placements.
Enforcement	De-registration/export (aviation) and arrest/sale (maritime) with local recognition; timelines vary.	Strong predictability in courts/arbitration; asset location dictates practical steps.	Modern enforcement under DIFC/ADGM; regional reach for counterparties and accounts.

15) Where this connects with TRW’s wider finance toolkit

Need capital for fleet expansion or yard payments? Combine with Project Finance where capex is tied to airports/ports/logistics terminals.
Using LCs and trade flows to support cash? See Trade Finance (LCs) for cargo-linked structures.
Building a multi-lender club or refinancing? Secured Lending & Syndication.
Documenting complex finance with step-in and intercreditor safeguards? Loan Documentation.
Need Shariah-compliant options alongside conventional tranches? Islamic Finance.
Facing turbulence and needing a workout? Restructuring & Insolvency.

Contact TRW (24/7)

Tahmidur Remura Wahid (TRW) Law Firm — Aviation & Maritime Asset Finance
Phones: +8801708000660 | +8801847220062 | +8801708080817
Emails: [email protected] | [email protected] | [email protected]

Global Law Firm Locations
Dhaka: House 410, Road 29, Mohakhali DOHS
Dubai: Rolex Building, L-12 Sheikh Zayed Road.

Disclaimer

This guide is a general overview for educational purposes and does not constitute legal, tax, or accounting advice. Every transaction is fact-specific. For a tailored strategy aligned to your asset, counterparty, jurisdictional and regulatory perimeter, please engage TRW’s dedicated team.

Structured checklist (copy-paste friendly)

Regulatory & payments: AD bank path validated; BB permissions mapped; rental/interest/fee purpose codes; customs/VAT/duty model.
Documentation: English or DIFC/ADGM law master set; Bangladesh law overlays and opinions; intercreditor and security agency.
Security: Aircraft/engine or ship mortgage; assignments (insurances, earnings, leases/charters); accounts charges; RJSC charges; notices.
Tax: WHT and VAT/duty priced and papered; stamp plan; gross-ups and indemnities; IFRS alignment.
Operations: MRO/class/flag covenants; insurance LOUs; sanctions & KYC; utilisation reporting; bunker/dues evidence (maritime).
Enforcement: De-registration/export or arrest/sale playbooks; emergency relief paths; local recognition steps; step-in rights.
Islamic options: Ijarah/Istisna/Murabaha compatibility; asset title and rent laddering; Shariah board approvals.

(Annex) Term-sheet anchors and diligence pack

Term-sheet anchors: tenor, rentals/interest, balloon/purchase option (if any), maintenance reserves, security package, accounts, governing law/seat, tax gross-up/indemnity, covenants (technical, financial, information), events of default, early termination, enforcement, sanctions/AML, reporting, conditions precedent.

Diligence pack: corporate approvals; asset technical reports; insurance quotes; AD bank comfort; RJSC search and filings plan; customs/VAT/duty memo; charterparty/lessee KYC (for onward hires); sanctions screen; financial model with currency/stress scenarios.

Loading…

Loading… | 5 MIN READ | BY TAHMIDUR REMURA WAHID