Investec has closed a $1 billion operating lease transaction with Emirates. The $1 billion transaction has facilitated the delivery and sale and leaseback of four A380-800s to Emirates over the past four months. The aircraft involved are of 2013 and 2016 vintages. Investec has acquired the 2013 vintages aircraft from Stellwagen Finance, the holding company for Aviation Finance Company (AFC). The 2016 deliveries are new deliveries direct from Airbus.
Investec acted as the sole arranger for both the financing and leasing elements of this transaction. Financings are provided by banks and institutional investors across Middle East, Europe and Asia. Investec has also put in place Islamic financing on two of the deliveries. (Click on the links for past articles on these transactions: AFC and EMP close sale-leaseback with Emirates for one A380 https://www.aviationnews-online.com/finance/afc-and-emp-close-sale-leaseback-with-emirates-for-one-a380/).
Nirmal Govindadas, Senior Vice President Corporate Treasury for Emirates, commented:
“Emirates’ clear long-term financing strategy and our solid reputation in the financial community enables us to secure funding in the global market to grow our fleet of wide-bodied aircraft. We are pleased to close the sale and lease back agreement for four A380s with Investec Aviation Finance, and we will continue to tap into innovative funding opportunities, maintaining our well-diversified financing portfolio to support our growing fleet.”
Alok Wadhawan, co-head of Investec Aviation Finance, commented: “The past 12 months has seen Investec Aviation achieve a number of important milestones. The closing of the $1 billion A380 aircraft deal with Emirates highlights our expertise and deep sector knowledge, and the quality and range of financing products and bespoke solutions we can provide to airlines and lessors. Top-tier credit for a 10/12 year period demonstrates how attractive aircraft financing is for both investors and companies seeking financing.”
Investec Aviation Finance has approximately US$5bn of aircraft assets under management through its own balance sheet and managed funds. In addition, Investec owns a 20% stake in Dublin-based Goshawk, along with Chow Tai Fook Enterprises and NWS Holdings.