ALAFCO acquires 9 aircraft portfolio from GECAS
August 8th 2016: GECAS has disposed of a 9 aircraft portfolio to Kuwaiti lessor Aviation Lease and Finance Company (ALAFCO). The portfolio is made up of Boeing and Airbus narrowbodies and is the second aircraft portfolio that GECAS has sold in recent weeks following the sale of a 45 aircraft portfolio to Avolon.
GECAS closes $280m senior debt financing deal with Aerolineas Argentinas
August 4th 2016: GE Capital Aviation Services has completed a 10-year, $280 million senior debt financing agreement with Buenos Aires headquartered airline Aerolineas Argentinas. The debt is secured on four A330-200s powered by GE’s CF6 engines and three B737-800s powered by CFM56 engines. GECAS said in a statement the four A330s are scheduled to fund in 2016 and the three B737-800s in 2018.
CALC completes new 'rental realisation transaction' on three aircraft
August 3rd 2016: In a 'first-of-its-kind' arrangement for a Chinese lessor, China Aircraft Leasing Group Holdings has entered into a 'rental realisation transaction' on three aircraft structured into senior and junior tranches to meet the different risk appetites and return expectations of investors. Winnie Liu, Deputy CEO and CCO of CALC, said the new structure also keeps the all-in-costs at a lower level for CALC.
The July 28th edition of Aviation Finance is published
July 28th 2016: In the latest issue of Aviation Finance: - Interview: SMBC Aviation Capital's Peter Barrett, after its debut $500m note issuance; Perspectives ELFC's Jon Sharp's post Farnborough view of the largest and most expensive rotable of all" - engine leasing, looking at the evolving jet engine aftermarket and the changing business models emerging in the engine leasing and MRO space; Joe Gill on results from the four leading European airlines - Wizzair, Easyjet, Lufthansa and Ryanair - underscoring the challenges facing carriers despite the benefits of lower jet fuel prices during 2016; Plus: Farnborough fails to dampen aviation industry confidence; Ortus JV aims to capture Japanese investor demand for aircraft; Bermuda set to implement Cape Town Convention.
SMBC AC issues $500m senior notes, reveals operating profit of $530 million
July 20th 2016: SMBC Aviation Capital has closed its long-awaited $500 million senior unsecured notes offering and disclosed selected financial results for the first time. These show that in the year to end March 2016 it made an operating profit of $530 million, up 22 per cent on the preceding financial year, on revenues of $1,046 billion, up 15 per cent year-on-year.
The July 14th edition of Aviation Finance is published
July 14th 2016: In the latest issue of Aviation Finance: - Asia, technology and weak demand are Farnborough themes; Aviation's public equity markets after 'Brexit'; Perspectives Embraer's Commercial CEO on the story of the newly launched E2; India's new Commercial Aviation Policy dissected; An idea for the MOM market - a B575MAX; Avolon acquires 45 aircraft from GECAS; COMAC's order; China lessor IPOs - struggling so far; Freight Market Overview.
Chinese lessor IPOs struggle
July 14th 2016: Two Chinese lessor IPOs completed in the past two months are struggling to perform on the Hong Kong stockmarket. BOC Aviation has dropped from HK$42 on its debut in early June to HK$38.6 at the time of writing. CDB Leasing, which was priced at HK$2, fell 7 per cent to HK$1.86 on its first day of trading on July 11th.
The June 30th edition of Aviation Finance
June 30th 2016: Aviation Finance latest issue: Brexit's reverberations through the aviation financing complex; Amedeo's CEO on legitimate current aviation ROI expectations; CIT bidding battle goes to the next round; Stephen Udvar Hazy's milestone; Nordic sees E190 supply situation as continuing buying opportunity; Goshawk, Aircastle close new credit facilities; Aergen's debut ABS issuance; India and Brazil further liberalise airline ownership rules; European airline share prices hammered in wake of Brexit; CBD 'cornerstone' approach to IPO sets price at bottom end of expectations.
USD currency movements - a key short term indicator of the impact of 'Brexit' on the UK and eurozone aviation finance sectors
June 24th 2016: Sterling dropped by as much as 11% compared with its pre poll level, as the Brexit vote became evident overnight, but recovered to a net fall of c.7% off following the Bank of England's announcement of a £250bn intervention fund to calm markets. The selloff is a measure of the economic impact of the vote*, on aviation financing ultimately in sterling, but another aspect is the impact on euro sources, as the euro has fallen also, but by a lesser amount against the US dollar than the pound. After an initial tumble of c.8%, the euro recovered along with the pound to trade c. 5% off.