Capital Management House, the Bahrain based investment bank, has announced it has made the first distribution of dividends to investors of its aircraft leasing investment fund, which was established in partnership with Novus Aviation and Muzun Partner.
The first payment for the earliest investors in the fund have received 10% per annum for the period ending 31 March 2011. Subsequent distributions will be made on a quarterly basis.
The fund has been structured around a transaction with Emirates Airlines, one of the world’s leading airlines, consisting of the acquisition of a Boeing 777-200ER aircraft from the airline and an agreement whereby it will be leased back to Emirates for a six-year period.
The fund is now being offered to additional investors across the region.
Khalid M Najibi, managing director of Capital Management House, says: "We are delighted to announce the payment of dividends, both underscoring the opportunities that exist in the aviation sector and leasing sub-segment as well as the ability of Capital Management House and our partners to effectively manage and leverage our investments.
The fund and our existing investment in the Boeing 777-200ER airliner acquired and leased back to Emirates has affirmed our strategy that acquiring income yielding assets not only provides the Bank and our investors with strong potential for capital appreciation over time but, importantly, ensures a recurring and sustained stream of income and the ability for us to deliver to our investors strong returns right from the outset. In today’s climate investors are seeking income-yielding products with limited downside risk. Our aviation fund delivers this. Working with our partner Novus Aviation, a market leader in the aviation leasing industry, we are confident that we will continue to identify and execute additional opportunities that will similarly help to generate strong and steady cash flows as well as significant longer-term upside potential.
