A Dubai-based aircraft leasing financing platform will manage a new junior debt fund designed to provide airlines and lessors with higher loan-to-value financing for the acquisition of Boeing manufactured aircraft.
A consortium composed of Novus Aviation Capital, Development Bank of Japan Inc, NORD/LB Norddeutsche Landesbank and The Boeing Company has launched Cedar Aviation Finance (CAF).
The fund will be managed by Novus and will provide junior and mezzanine loans to bridge the gap between equity and senior debt.
“We are delighted to work with global and long-standing institutions to launch this landmark venture, which we believe will serve an important market need. With continued traffic growth and aircraft prices on an upward trajectory, coupled with the importance of preserving cash for airlines and lessors alike, this new venture is expected to be a popular financing tool,” said Hani Kuzbari, managing director at Novus.
CAF builds off of the market acceptance of similar financial products and the first transaction is expected to take place by the end of the third quarter this year, a statement said.
Operating globally out of five offices in Europe, Asia and the Middle East, Novus has an aircraft portfolio under the management of around 50 aircraft worth nearly $4 billion.
“As we continue to see strong market demand for Boeing aircraft, Boeing is pleased to partner with industry leaders Novus, DBJ and NORD/LB to bring additional financing solutions for our customers around the world,” said Tim Myers, president of Boeing Capital Corporation.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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