Singapore Airlines Generates $1.5 Billion From Aircraft Leaseback Sales
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Singapore Airlines has raised approximately US$1.5 billion for the sale and leaseback of 11 of its widebody aircraft. The airline has been struggling with liquidity during the pandemic and will use the money to help it navigate the ongoing low demand.
Singapore Airlines has raised liquidity by the sale and leaseback of 11 aircraft. Photo: Singapore Airlines
The airline confirmed in a statement today that it had completed the sale and leaseback of seven Airbus A350-900s and four Boeing 787-10s. Reportedly four parties were involved in the process, and the airline raised S$2 billion (US$1.5 billion).
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EastMerchant has successfully closed the sale and lease-back of two Boeing787-10 and one AirbusA350-900 aircraft between Singapore Airlines and Crianza Aviation, the Korean aircraft lessor.
The transaction features a novel, multi-layered financing structure with the senior financing being supported by KfW IPEX-Bank / Balthazar for the AirbusA350-900 and the two Boeing787-10 financed by AFIC / NatixisSingapore and Apple Bank which is complemented by Korean mezzanine debt raised by Seoul based Cerritos Holdings as well as equity from Korean investors together with Crianza.
Baldur Vander, Chief Executive Officer of Crianza, said: “We started work on this project in mid-2020 in the midst of high uncertainty and it makes us very proud that EastMerchant and Crianza have been able to bring together a large group of finance parties to support Singapore Airlines during unprecedented times. Crianza has successfully navigated through the pandemic while shielding its inve
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SIA secures $1.5bn in sale-and-leaseback deals for 11 aircraft
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Flag carrier Singapore Airlines (SIA) has raised a total of $1.5bn (S$2bn) from sale-and-leaseback transactions arranged by four different parties.
The deals involve 11 aircraft, comprising seven Airbus A350-900s and four Boeing 787-10s.
The transactions with aircraft leasing company Aergo Capital includes one aircraft each of Airbus A350-900 and Boeing 787-10, and with assets management firm Altavair involves four Airbus A350-900s.
Additionally, aircraft lessor EastMerchant / Crianza Aviation deal contains one Airbus A350-900 and two Boeing 787-10s, while investment firm Muzinich and Co involves one Airbus A350-900 one Boeing 787-10.
The aviation industry, one of the hardest-hit sectors by the global pandemic, is now whetting the appetite of South Korean private equity firms which have begun to prepare for post-pandemic portfolios.
IMM Investment Corp. s aircraft operating and leasing joint venture, Crianza Aviation, has recently bought three airplanes from Singapore Airlines, according to the company and industry sources on Apr. 22. They are new widebody aircraft from Boeing Co. and Airbus SE. Institutional investors and banks at home and abroad financed the purchase. The aviation industry has been undergoing the worst correction in its history, but we believe it will make a recovery starting this year, an IMM Investment source told Market Insight, the capital news arm of The Korea Economic Daily.