Novus launches Tamweel Aviation Finance II; NAC places $486m unsecured debt

Eleanor Steed
By Eleanor Steed March 26, 2018 16:34

Novus launches Tamweel Aviation Finance II; NAC places $486m unsecured debt

Novus Aviation Capital, a Dubai-based aircraft leasing and financing company, has launched its second junior debt fund dedicated to the financing of Airbus aircraft, Tamweel Aviation Finance II (TAF II), which is a partnership between Airbus, Development Bank of Japan, Norddeutsche Landesbank and Airbus Group Bank.

TAF II will be managed by Novus and will focus on junior and mezzanine financing solutions for both airlines and leasing companies. Launched in July 2013 in response to a rapidly changing aircraft financing environment, TAF I has fully committed its allotted funds.

“The growth outlook of the airline industry along with the large delivery stream are expected to drive an increasing demand for this type of financing product,” said Mounir Kuzbari, Managing Director at Novus.

 “Building on the experience and success of the first Tamweel Aviation Fund, we foresee a great future for TAF II with, again, a lot of value being delivered to our customers through innovative financing solutions,” said Nigel Taylor, SVP Financing and Guarantees, Airbus.

Nordic Aviation Capital (NAC) has recently completed the placement of US$486m of unsecured debt through US$381 million senior unsecured private placement issuance and an us$105 million unsecured schuldschein offering. These issuances consist of 3,5,7,8, and ten-year tranches. The proceeds will be used to refinance aircraft within its portfolio. The issuances will rank pari passu with all other unsecured indebtedness of the Issuer, a wholly-owned subsidiary of NAC.

This private placement issuance follows the company’s inaugural issue in June last year and is a continuance of the program in migrating to an unsecured financing structure. The Schuldschein was the company’s first such issuance in this market as it seeks to widen its sources of unsecured funding.

‘We are very pleased with both these issues and the continuing operational flexibility it affords NAC as we continue to expand our customer base,” says CEO Søren M. Overgaard.

The US Private Placement issue was arranged by Citi and BNP Paribas, and the Schuldschein was arranged by Investec Bank.

Eleanor Steed
By Eleanor Steed March 26, 2018 16:34