NCB Capital, the largest investment bank in Saudi Arabia with over USD 40 billion of assets under management and the largest global Shariah-compliant asset manager, announced that a vehicle advised by one of its subsidiaries has signed an agreement to acquire a portfolio of 19 commercial aircraft from AerCap Holdings N.V. (NYSE: AER). AerCap, the global leader in aircraft leasing and aviation finance, will provide technical and lease management services to the portfolio.
The acquisition was structured and executed by NCB Capital in partnership with the Treasury Group of its parent bank, the National Commercial Bank (NCB), and is part-financed with a USD 500 million revolving Murabaha facility structured with Citibank and jointly arranged by Citibank and BNP Paribas. This facility is the world’s first non-recourse Shariah-compliant revolving warehouse facility to acquire global aircraft assets, and is a key milestone in supporting NCB Capital’s aircraft leasing and financing capabilities.
The aircraft portfolio comprises a mix of narrow-body and wide-body Airbus and Boeing aircraft on lease to 17 different airlines across 16 jurisdictions. The deal marks NCB Capital’s second aircraft transaction with AerCap and brings the total portfolio under NCB Capital-managed entities to 40 aircraft.
NCB Capital’s first transaction for 21 aircraft in December 2017 was followed by the launch of its landmark Aviation Fund I, a USD 200 million fund that offered KSA-based investors exposure to a unique asset class.
Sarah Al Suhaimi, Chief Executive Officer of NCB Capital said, “This innovative transaction and the application of new Shariah-compliant credit facilities, reaffirms NCB Capital’s commitment to being at the forefront of the local and regional asset management sectors. We are delighted to have partnered once again with leading financial institutions and AerCap.”
Talal Al Khereiji, Head of Treasury Group at NCB said, “As part of our ongoing strategic collaboration, we are delighted to partner with NCB Capital in this second aviation transaction that enables the NCB Group to continue providing innovative and market-leading solutions to our clients.”
“We are very pleased to work with NCB Capital on this second innovative transaction. It reaffirms the attractiveness of our aviation assets globally and the reach and scale of the AerCap platform," said Aengus Kelly, CEO of AerCap. "With this sale, AerCap will have sold or contracted to sell approximately $1.4bn of mid-life assets to NCB since 2017. We thank NCB Capital for the confidence they have placed in AerCap and we look forward to working with the NCB Capital team for many years to come."
The transaction has been facilitated through an entity appointing NCB Capital (DIFC) Limited as its asset manager for this transaction.