Irish aircraft leasing firm AerCap seals $1bn deal with Guggenheim
Published 06/12/2012 | 05:00
THE Irish wing of a major aircraft-leasing company has sold $1bn (€760m) worth of aviation loans to a global financial services firm.
AerCap Ireland limited secured the lucrative deal with a subsidiary of US-based firm Guggenheim Partners Ltd, founded by the family behind the famous New York art museum of the same name.
The firm, which has its offices in Shannon, sold its equity interest in Aircraft Lease Securitisation Limited (ALS) by transferring 100pc of its interest in the E-notes – the equity securities issued by ALS – to Guggenheim.
ALS is an asset-backed securitisation company.
The deal shows the scale of aviation financing being performed in Shannon as the Government announced the separation of Dublin Airport from Shannon earlier this week.
Guggenheim chief investment officer Scott Minerd said the transaction provided a compelling investment for some of their clients.
"Working in concert with our commercial aviation investment management group, Guggenheim Aviation Partners, we are able to leverage extensive expertise in evaluating aviation investments for our managed account clients," he said.
AerCap is based in the Netherlands but has offices in Ireland, the United States, China, Singapore and the United Arab Emirates.
It has $10bn (€7.6bn) worth of assets and a fleet of 337 aircraft. It has 100 customers in more than 50 countries, including Air France, Aer Lingus, Virgin Atlantic, United, US Airways and American Airlines.
Latest accounts filed with the Companies Office in August show that AerCap Ireland made a profit in the financial year last year of $53m (€40m)
Ireland is one of the biggest hubs in the world for aircraft leasing companies, thanks in large part to our favourable tax regime.
Among the companies that have a presence here are Aergo Capital Ltd, Aircastle Advisor Ireland Ltd, Aldus Aviation Ltd, Apollo Aviation Ltd, and AWAS Ireland Ltd.
The Irish Aviation Research Institute estimates that Ireland-based aircraft leasing companies manage $150bn (€115bn) in assets, accounting for 19pc of the global fleet.