Investec in world's 'first' aircraft debt fund
Investec will launch a $500m (£316m) fund to invest in aircraft debt later this month, which the specialist asset manager claims is a world first.
Investors are piling money into the fund, which will effectively fill the gap left by major banks. Since the financial crisis, major banks have been lending to the airline industry at less attractive rates.
Ramki Sundaram, the former chief executive of Mumbai's now-defunct Air Deccan, who heads Investec Aircraft Finance, told the Independent on Sunday that European pension and insurance funds are among the institutional investors.
He added: "Investing in aircraft gives a very good risk return to institutional investors and we will be looking at senior and mezzanine debt for aviation. This is the first time that this has been done – not just in the UK – and it's taken a few months to get this into place."
The aircraft finance division has previously raised two equity funds, worth $1bn and $650m. This money is used to buy aircraft which are then leased to major airlines, including Qantas, Air France and Air China.
Investec is looking at raising a third of these funds by the end of the year.
"We've had enquiries about another fund. It's on the drawing board," the firm said.
- 1 Marijuana use by teenagers does not result in a lower IQ or worse exam results, study finds
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes too far at the Q Awards
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 NHS staff banned from drinking tea or coffee on the job because it looks like they're not working hard enough
Renee Zellweger on plastic surgery: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
Kim Jong-un 'purge': Six North Korea officials missing for weeks 'may have been executed'
Diwali: What is the festival of lights – and how is it celebrated around the world?
Nathan Cirillo: Final pictures emerge of soldier moments before he was shot dead by Ottowa gunman
Jimmy Carr's controversial Oscar Pistorius joke goes too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
iJobs Money & Business
£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...
120-150k: Accountancy Action: We are looking for an experienced CFO from a min...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...