ST Engineering’s aerospace arm has injected US$6.4 million, or around S$9 million, into ST Engineering Aerospace Resources, which will in turn inject the funds into its joint venture, Keystone Holdings (Global), the aerospace and defense company said Thursday.
The funds will be used to expand Keystone Holdings’ aircraft leasing business via the purchase of aircraft assets, ST Engineering said in a filing to SGX.
The capital injections bring ST Engineering’s total contribution to STEA Resources and Keystone Holdings to around US$55.4 million and US$24.8 million, respectively, the filing said.
Keystone Holdings, which has a portfolio of aircraft on lease to global airlines, is a 50:50 joint venture between STEA Resources and SJ Aviation Capital, the filing said.
SJ Aviation Capital is a subsidiary of Sojitz Corp. of Japan. In 2016, ST Aerospace sold the 50 percent stake to SJ Aviation Capital for around US$10.7 million, the company had said.