Investec closes $1bn A380 aircraft deal with Emirates

United Kingdom-based Investec Bank’s aviation finance arm has successfully closed a $1bn operating lease transaction with Emirates Airline for four A380s, the lender announced on Monday.

The transaction facilitated the delivery, sale and leaseback of four jumbo Airbus A380-800s to Emirates over the past four months, a statement said.

The aircraft involved are of 2013 and 2016 vintages.

Investec acquired the 2013 aircraft from Stellwagen Finance – the holding company for Aviation Finance Company while the 2016 aircraft are new direct deliveries from Airbus.

The UK bank acted as the sole arranger for the financing and leasing elements of the transaction.

Banks and institutional investors across Middle East, Europe and Asia provided the financing. Investec has also put in place Islamic financing on two of the deliveries.

The deal offers exposure for investors for a 12-year period on brand new aircraft with top tier credit,” Investec said.

Co-head of Investec Aviation Finance Alok Wadhawan said: “Top-tier credit for a 10/12 year period demonstrates how attractive aircraft financing is for both investors and companies seeking financing.”

Read: Airbus should do better job selling A380 superjumbo – Emirates chairman

Emirates senior vice president for Corporate Treasury Nirmal Govindadas added: “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 will continue to tap into innovative funding opportunities, maintaining our well-diversified financing portfolio to support our growing fleet.”

Emirates is the world’s largest operator of the Airbus A380s and has ordered 142 jets with 77 already in operation. It flies the aircraft to 40 destinations worldwide.