Novus Aviation Capital has launched its third secured second lien debt fund Tamweel Aviation Finance III (TAF III). Like the previous funds, TAF III is dedicated to financing Airbus aircraft.
TAF III is a closed end fund co-sponsored between Airbus, Development Bank of Japan (DBJ) and Novus.
Novus will manage the funds and will focus on providing attractive secured second lien financing solutions to its airline customers.
The Tamweel Aviation Finance franchise has supported both airline and lessor borrowers. The fund combines second lien financing with a range of financing structures across multiple geographies, credit profiles and aircraft types.
“TAF III has attracted strong institutional support at launch, with commitments from the co-sponsors,” a Novus spokesperson said to Airline Economics.
The launch of TAF III follows the deployment of capital from TAF II, which was launched in 2018 and has now fully committed its allotted funds. This fund is targeted to be larger than its predecessor, though Novus was unable to share a specific target or range at this time.
The fund is designed to serve a “geographically diversified airline customer base”. Prior funds have provided secured second lien loans globally to airlines such as Condor and Korean Airlines, as well as most recently Breeze. The fund targets multiple regions that are taking Airbus deliveries and seeking to diversify funding sources.
"Airbus is proud to continue its 12-year positive track record with the Tamweel Aviation Finance funds, and we are delighted to be a sponsor of this third fund," said Paul Meijers, EVP – head of commercial transactions at Airbus. "TAF has proven itself to be a very efficient and effective tool, not only supporting Airbus delivery financing but also offering significant value through higher financing to our customers.”
“With increasing Airbus delivery schedules and airlines actively seeking to diversify their funding sources, TAF III is ideally positioned to meet the growing demand for creative financing solutions,” said Novus Aviation Capital co-CEO Mounir Kuzbari.
“DBJ remains committed to supporting the sustainable and long-term development of the global aviation industry by facilitating resilient financing solutions for airline customers,” said DBJ co-head of global aviation team Yuichi Yamamoto.
The timing of TAF III's launch was largely due to TAF II having deployed its capital, as well as Airbus continuing its delivery ramp up. Despite near-term geopolitical uncertainty, the spokesperson said the company take a “long-term view of the industry” and that geopolitical uncertainty is a “constant feature” that the aviation sector contends with.