Airborne Capital and Mercuria Investment Group Agree Aviation Finance Joint Venture in Japan

  • Airborne Capital Limited (“Airborne”) and Mercuria Investment Holdings Co., Ltd. (“Mercuria”) are pleased to announce the agreement, between Airborne and Mercuria’s subsidiary Mercuria Investment Co., Ltd., to enter into a joint venture for the operation of a new entity in Japan, called “Mercuria Airborne Capital Co., Ltd.” (“JV”).

  • The JV provides Airborne with increased access to Japanese aviation investors, and it enables Mercuria to further expand its expertise in cross-border alternative investments, catering to Japanese investors seeking bespoke aviation investments.

  • The business will be a bridge between the specific needs of Japanese aviation investors and the changing dynamics in the global aviation market.

  • Despite the challenges posed by the COVID-19 pandemic, aircraft investment continues to provide attractive investment and yield opportunities to investors worldwide, with the JV being established in anticipation that the role institutional investors play in the aviation leasing industry will grow at a faster pace.

    Press Release (.pdf)

Airborne Prices Inaugural Aircraft ABS Transaction

  • Airborne Capital prices its inaugural asset backed securitisation (ABS) transaction, led by Deutsche Bank, Mizuho and Credit Agricole-CIB as joint lead structuring agents and joint lead bookrunners.

  • The $637 million Tailwind 2019-1 ABS is offering in three tranches of notes secured on a portfolio of 17 aircraft – 15 narrowbody aircraft: seven A320-200s, three A320neos, three A321-200s and two 737-800s; and two widebodies: one 777-300ER and one A330-300 – with a weighted average age of 4.7 year and an average remaining lease term of approximately 6.3 years.

  • The transaction comprises: $510million A-rated A notes with an initial loan-to-value (LTV) ratio of 66.5%; $81 million BBB-rated C notes with an LTV of 77%; and $46 million BB- rated C tranche with an LTV of 83%.

  • The A and B notes amortise on a 13.5-year straight-line schedule, while the C notes amortise on a seven-year straight-line schedule. 

  • Airborne will purchase at least 10% of the equity certificates supporting the E Note issued by Tailwind 2019-1, which it will be required to hold until the expected final payment date in November 2026.

  • Credit Agricole-CIB is providing the nine-month liquidity facility, with SG American Securities at the joint bookrunner. 

  • Tailwind 2019-1 will include FEXCO Aviation Services as a first time managing agent for an aircraft ABS transaction. 

L1 Treasury and Airborne Capital commit US$250m to launch of AltitudeOne Aviation

  • AltitudeOne Aviation Ltd (“AltitudeOne Aviation”) is a venture launched by LetterOne Treasury Services SA (“L1 Treasury”) and Airborne Capital Limited (“Airborne Capital”)

  • AltitudeOne Aviation will invest in a diversified portfolio of in-production narrow body and wide body commercial aircraft leased to airlines across the world

  • L1 Treasury  manages the liquidity and financial investments of LetterOne Group (“LetterOne”), an international investment business with net assets in excess of US$25bn

  • Airborne Capital is a specialist aircraft leasing and asset management business with offices in Dublin and London

  • Airborne Capital has a highly experienced management team with over 100 years of combined experience in aviation

    Press release (.pdf)

Natixis Investment Managers acquires stake in Airborne Capital

  • Natixis Investment Managers, one of the world’s largest asset management firms and the asset
    management arm of French bank Group BPCE, has acquired a minority stake in specialist aircraft
    lease and asset management firm Airborne Capital. The stake was acquired for an undisclosed sum from the existing shareholders, comprising Airborne’s founding management team and FEXCO, Ireland’s largest privately owned financial services company.

  • The deal provides Airborne with access to a worldwide asset management platform which will help to accelerate its plans to grow the business to have aircraft assets under management of over $5bn within the first 5 years of operations. The transaction enables Natixis Investment Managers to continue to expand its expertise in alternative investments, specifically real assets.

    Press release (.pdf)