Four A380s Sold in $1 Billion Transaction With Investec Bank and Emirates

Emirates, an airline based in Dubai and Investec Bank, an international specialist banking and asset management group join forces to finance two new Airbus A380 jets, owned by Emirates and two others from Stellwagen Finance.  After the purchase they will then lease the planes back to Emirates for 12 years.

Investec Aviation Finance, established in 2002 provides commercial aviation finance solutions across debt and equity. They are based in the United Kingdom, Ireland, Australia, and South Africa and were able to raise the $1 Billion from banks and institutional investors in the Middle East, Europe, and Asia through some Islamic financing.

Alok Wadhawan, co-head of Investec Aviation Finance, states that Investec plans to own all four Airbus A380s for 12 years before selling them off in the secondary market. This deal for the four Airbus A380s was strictly for dollar exposure for their investors. Wadhawan, believes that they will get

“steady returns, the assets are mobile, and the security collateral is strong.”

This is not Investec’s first rodeo in the aviation market. They financed several single-aisle and twin-aisle Boeing and Airbus Aircraft carriers.

Not only is Investec looking for short term needs, but he feels that there will be a better market for larger planes after the 12 years of ownership. With over 180 A380s operating across the world he feels there will be larger planes in the sky spiking the demand for the future.


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