Global Aircraft Fund increases assets

The Australian-based Investec Global Aircraft Fund (IGAF) has increased assets under management to more than USD300million with the acquisition of a new Boeing 777-300ER.

The Boeing 777-300ER has been delivered to Taiwanese-based airline EVA Airways Corporation, which has leased the aircraft for an initial 12-year period. EVA has over 20 years operating history.

IGAF’s portfolio now includes:
> Two Airbus A321-200s on lease to Qantas (sub-leased to its subsidiary, Jetstar)
> Two Boeing B737-800s on lease to Jet Airways of India
> One Boeing B777-300ER on lease to EVA.

These aircraft are consistent with the asset, jurisdiction and lease maturity diversification that the Fund Manager is targeting, and are all new-generation, high-utility aircraft with large operator bases.

IGAF's Australia-based Chief Operating Officer, Mr David Phillips, said:

“We recognise that the current economic climate of high fuel prices and weakening economic conditions in certain regions is challenging for airlines around the world. Our focus remains on sourcing good quality assets and sound credit counterparties. We invest a significant amount of time on ensuring our transactions meet our objectives. While we have been conservative in our asset and lessee selection, we are pleased that we have managed to increase assets at an average of USD60m per month since the Fund’s inception.”

Mr Michael Weiss, IGAF’s London-based Chief Executive Officer, said:

“We are very pleased with the assets we have sourced and the associated financing we have put in place for their acquisition. The debt financing is limited recourse to each of the assets and perfectly matches the underlying leases in terms of currency, term and interest rates. Accordingly, the Fund is not exposed to refinancing risk.”

The Fund is managed by Investec (Australia) Investment Management Limited, a subsidiary of Investec Bank (Australia) Limited, and utilises the resources of Investec’s Global Aircraft Financing franchise, which is part of the bank’s Capital Markets business.

Head of Investec Capital Markets in Australia, Mr José de Nobrega, said:

“While it is relatively early days for the Global Aircraft Fund, the results to date demonstrate our belief in bringing together this area of Investec’s expertise with clients and our own capital to deliver attractive and steady returns for all stakeholders.”

IGAF continues to examine additional acquisition opportunities globally, and is likely to seek a further capital raising later this calendar year.