Aviation Finance completes acquisition of Airbus A350-900 on lease to Singapore Airlines

Aergo Capital Limited and Singapore Airlines logo

Our role

Investec Aviation Finance (Investec) has successfully arranged the acquisition and funding of an Airbus A350-900 aircraft on lease to Singapore Airlines from Aergo Capital Limited. The acquisition is supported by third party senior debt and equity co-investment from institutional investors and will generate substantial economics for the Bank.

The deal marks the addition of a second Singapore Airlines new generation widebody aircraft to Investec's managed portfolio during 2023.

Aergo has been a client of the Aviation desk for several years, over which time we have provided debt finance into their platform and completed previous aircraft trading transactions.

Leveraging our deep investor network to procure innovative debt and equity capital helped Aergo achieve their sales target, while delivering attractive risk adjusted returns to our co-investment partners.

The deal featured several aspects of Investec's broader offering, including a substantial interest rate hedge on the debt finance to minimise investor exposure to a volatile interest rate market environment.

Our speed of execution is expected to create more trading opportunities with Aergo and other similar aircraft leasing companies.

Fred Browne of Aergo commented “We are delighted to complete the sale of this A350-900 on lease to Singapore Airlines to Investec. We extend our gratitude to Singapore Airlines who have been an excellent counterparty throughout the duration of our partnership and would also like to thank Investec for their dedication and collaboration in getting this deal closed in an efficient and timely manner. We look forward to developing our positive working relationship with Investec further into 2024.”

About Aergo Capital

Aergo Capital is a leading aircraft leasing and trading company with more than $4.4b of aircraft owned and managed.

Aergo, alongside US based private equity partner CarVal, invests in a broad range of aircraft transactions, from regional turboprop aircraft through to large widebodies with the world's tier 1 airlines such as Singapore and Emirates.

About Singapore Airlines

Singapore Airlines Limited (SGX:C6L), founded in 1947, is the flag carrier of the Republic of Singapore and the flagship carrier of the Singapore Airlines Group. The airline operates out of Changi International Airport in Singapore and has a current fleet of more than 150 aircraft.

Watson Farley & Williams LLP represented Investec on the acquisition and Clifford Chance LLP represented the senior lenders.