Willis Lease Finance raises $35M from DBJ, funding Malaysia expansion at 8.09%

WLFC is scaling from an engine-and-aircraft lessor into a broader, vertically integrated aviation platform, using maintenance, repair, asset management and partner-backed capital to grow beyond its own balance sheet. Its latest strategy includes expanding Willis Engine Repair Center capacity into Malaysia, while assets under management reached roughly $4.4 billion by June 30, 2026.

The filing adds fresh growth capital, not a new strategic direction. WLFC has agreed to issue 1.75 million Series B preferred shares to Development Bank of Japan for approximately $35 million, with closing expected by the end of the third quarter. 〔0〕 This directly supports the company’s already-announced push to expand its global maintenance footprint, including the planned Johor, Malaysia repair center.

The trade-off is expensive capital rather than balance-sheet debt. The new securities carry an 8.09% annual dividend, implying roughly $2.8 million of annual preferred distributions before fees if all shares are issued. That gives WLFC funding without immediately adding conventional borrowings, but it raises the hurdle for the expansion to generate returns for common shareholders.

DBJ’s participation reduces execution uncertainty, but the financing itself was not widely pre-disclosed. This continues a nearly decade-long relationship and follows DBJ’s 2024 Series A investment, which had already expanded its preferred capital exposure to $65 million. 〔1〕 The direction—more capital for the platform—fits the standing story; the new information is the size and cost of the Series B funding, not a wholesale change in strategy.

Bottom line: This is useful expansion funding for a company entering a capacity-building phase, but it is not free capital. It advances the Malaysia and global-services plan while leaving common shareholders to wait for the new assets and facilities to earn more than the preferred return.