As mentioned a few hours ago across the web by Airline Economics: Aviation Capital Group has priced an Ex-Im bond transaction at 61bp over mid life swaps which was 6.16 years. The final rate was 1.693% which was a new record for any Exim Bond. The transaction was 4.7 times oversubscribed. This deal proves, if any were needed, that some top tier aircraft and engine lessors are able to price at rates which guarantee the profitability of new aircraft and moreover rates such as this, Ryanair last week and Willis last week, ensure that new aircraft remain a better deal than use aircraft for many airlines. It also means that unless an airline and/or lessor is able to secure the very best financing then they are in trouble as interest rates are not going to go anywhere over the next three years or so as there remains too many economic car crashes out there.
AVIATION CAPITAL GROUP BREAK Ex-Im FUNDING RECORD
