Abu Dhabi: Abu Dhabi-based investment company Waha Capital said on Sunday it would invest $135 million (Dh495.4 million) in a 50 per cent stake in the $2.4 billion AerVenture, a subsidiary of Dutch aircraft leasing firm AerCap.
AerVenture has taken delivery of 22 Airbus A320 aircraft which have been leased to airline companies around the world. The customers include Air France-KLM and Royal Jordanian.
The joint venture will eventually be leasing 54 aircraft, and the remainder of the A320 family of aircraft on order will be delivered between now and May 2011.
AerCap, which will retain a 50 per cent stake in AerVenture, will invest another $135 million as its share of equity investment in the joint venture company with the combined total investment in AerVenture standing at $270 million, top company executives said at a news conference here.
"The joint venture that we are marking today is a tremendous expansion of our asset base and the number of aircraft in our portfolio," said Waha Capital's Chief Executive Officer Salem Al Nuaimi.
"To raise our share of $135 million, we will be using our own facilities. The financing for the joint venture's debt facility is in place," Al Nuaimi added.
AerCap's Chief Executive Officer Klaus W. Heinemann said the new company's equity component would be about 11 per cent, with the remainder being debt.
"The cash flows will partly be used to retire debt over a period of 12 years," Heinemann told reporters, adding that $2.4 billion is the equipment cost.
He said the average monthly lease rental per month for an aircraft valued at $38 million works out to $380,000.
"We recover on average 1 per cent in capital costs per month per aircraft," said Heinemann.
He said the joint venture is being financed by a consortium of banks led by France's Calyon Bank.
"We believe this partnership is mutually beneficial, and would significantly expand Waha's footprint in the global acquisition and leasing sector and elevate our service offering," said Al Nuaimi, adding that Waha Capital, before yesterday's deal, has been involved in the financing of 47 aircraft.
The company established by restructuring Oasis International Leasing in 2008 had said at the time of restructuring that its investments over the next three years in aviation, finance, real estate, infrastructure and maritime and logistics sectors will together exceed Dh20 billion.
Shares of Waha Capital fell 5.68 per cent on Sunday on a declining Abu Dhabi Securities Exchange (ADX), closing at Dh0.83 per share.
