Mac Bank acquires aircraft from AIG
(15 April 2010 – Australia) Macquarie Group Limited announced yesterday that Macquarie Bank Limited (MBL) has entered into an agreement to acquire an aircraft operating lease portfolio from International Lease Finance Corporation (ILFC), a subsidiary of American International Group, Inc. (AIG).
The investment bank said the purchase will be funded from existing cash reserves and of the 53 aircraft that Macquarie has agreed to purchase from ILFC, 47 aircraft will be acquired for US$1,671 million (A$1,794 million).
In connection with the transaction the bank will transfer to Macquarie AirFinance Limited (MAF), a global aircraft leasing company of which Macquarie owns 37.5 percent, MBL’s right to purchase six of the 53 aircraft directly from ILFC on similar terms to MBL.
The bank said in a statement that the portfolio of the 47 aircraft comprises of young, modern aircraft that are on lease to 35 airlines in 27 countries.
The weighted average age of the fleet is less than 4 years and the average remaining lease term is more than 5 years. Boeing 737 Next Generation and Airbus A320 Family aircraft make up more than 70 percent of the portfolio.
The bank said that the remainder of the portfolio are in-production widebody aircraft, well suited to the operating lease market and that the investment bank considers the credit quality of the lessees to be above average for an aircraft operating lease portfolio.
The acquisition builds on Macquarie’s existing leasing business in the aircraft sector through its Corporate and Asset Finance division (CAF) which has loans and leases under management of A$13.8 billion, as at 31 December 2009 across a range of industry sectors.
Macquarie Group’s chief financial officer, Greg Ward, said that the transaction leverages Macquarie’s existing expertise in asset leasing, demonstrates the strength of its aircraft management capabilities and diversifies the client base of the bank’s aircraft fleet.
In connection with the transaction the bank will transfer to Macquarie AirFinance Limited (MAF), a global aircraft leasing company of which Macquarie owns 37.5 percent, MBL’s right to purchase six of the 53 aircraft directly from ILFC on similar terms to MBL.
The bank said in a statement that the portfolio of the 47 aircraft comprises of young, modern aircraft that are on lease to 35 airlines in 27 countries.
The weighted average age of the fleet is less than 4 years and the average remaining lease term is more than 5 years. Boeing 737 Next Generation and Airbus A320 Family aircraft make up more than 70 percent of the portfolio.
The bank said that the remainder of the portfolio are in-production widebody aircraft, well suited to the operating lease market and that the investment bank considers the credit quality of the lessees to be above average for an aircraft operating lease portfolio.
The acquisition builds on Macquarie’s existing leasing business in the aircraft sector through its Corporate and Asset Finance division (CAF) which has loans and leases under management of A$13.8 billion, as at 31 December 2009 across a range of industry sectors.
Macquarie Group’s chief financial officer, Greg Ward, said that the transaction leverages Macquarie’s existing expertise in asset leasing, demonstrates the strength of its aircraft management capabilities and diversifies the client base of the bank’s aircraft fleet.
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