Investec closes $1 billion A380 aircraft deal with Emirates
10 / 05 / 2016
The aviation financing arm of Investec Bank’s has completed an operating lease transaction with Emirates Airline worth a cool US$1bn.
The deal facilitated the delivery and sale and leaseback of four A380-800s to Emirates over the course of the past four months. The aircraft involved are of 2013 and 2016 vintages, Investec confirmed, the former aircraft having been acquired from Stellwagen Finance, the holding company for Aviation Finance Company (AFC). The 2016 aircraft were new deliveries direct from Airbus.
Investec acted as the sole arranger for both the financing and leasing elements of this transaction. Financing was 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.
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, added: “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.”
Such aircraft financing deals might be particularly attractive right now for carriers in what remains an uncertain operating environment.