Falko Regional Aircraft (Falko) has completed a $415 million capital raising to be used for investments in leased, regional aircraft globally. The leasing and asset management company significantly surpassed its original target of $300 million.
Falko received commitments from a diverse group of institutional investors, including public and private pension plans, insurance companies, wealth managers, endowments and a sovereign wealth fund from across North America, Europe and Africa.
Jeremy Barnes, Chief Executive Officer of Falko, said: “We are delighted to have achieved a successful First and Final Close for our inaugural fund, above target. This marks an exciting new chapter for the Falko business, and we look forward to developing the platform with the backing of a diversified group of high-calibre, institutional investors. We are extremely grateful to Fortress for its ongoing support and sponsorship of the company.”
Falko intends make equity investments in new and used, leased regional aircraft globally. This strategy is an extension of Falko’s current aircraft leasing and management activities.
Evercore Private Funds Group acted as the exclusive global placement agent for the fund raising. Falko’s legal advisors were Kirkland & Ellis (International & US) and Carey Olsen (Jersey).
Meanwhile, China Aircraft Leasing Group Holdings (CALC) has taken delivery of the first aircraft from its large order of 100 Airbus aircraft placed in December 2014 and completed the first delivery to its new customer Air Macau. The aircraft is financed by The Korea Development Bank, KDB Asia Limited, and KEB Hana Bank, marking CALC’s first aircraft financed by Korean financial intuitions.
The delivery was completed on 29 October at the facilities of Airbus in Hamburg, Germany. This is Air Macau’s first aircraft with an operating lease and the 10th A321 operated by the carrier. CALC and Air Macau signed leasing agreements for four aircraft (one A320 Airbus and three A321 Airbus) on 29 May 2015. The remaining aircraft will be delivered by early 2016.
“Being able to complete the first delivery in just 5 months shows the high level of professionalism and efficiency of the Air Macau team, and also reflects the seamless cooperation between us.” Stephane Depeyre, Vice President, Sales and Marketing of CALC said. “The arrangement with Air Macau also demonstrates CALC’s competence to timely address customers’ needs with fast and flexible delivery schedule by leveraging our close relationship with Airbus. For that, we must thank Airbus for the continued support, and for delivering our first aircraft in less than a year after our purchase agreement signed in December last year.”
This financing by The Korea Development Bank, KDB Asia, and KEB Hana Bank covers two of the A321 aircraft being delivered to Air Macau. Among the transaction parties, KDB Asia Limited is the facility agent and security trustee, Norton Rose Fulbright (Asia) acts as the transaction counsel representing the lenders and William KK Ho & Co as the transaction counsel representing CALC.
Barry Mok, Chief Financial Officer of CALC, said: “We are pleased to have obtained our first financing by the top-tier Korean banks. The Korea Development Bank is South Korea’s largest shipping and aviation house while KEB Hana Bank is the largest bank by asset size in South Korea. The arrangement further enhances our international financing network. Together with the ECA financing and our facilities framework agreement with the Export-Import Bank of China, CALC has built up a number of important international financing alternatives supporting our global business expansion.”
CALC’s Director of Finance, Christian McCormick is speaking at the Airline Economics Growth Frontiers Hong Kong event tomorrow (November 3) at the JW Marriott at 11:40.