Macquarie, PGGM, and Australian Retirement Trust Back AirFinance’s Purchase of Aircraft Portfolio

Posted on 01/12/2023


Macquarie Asset Management, PGGM Infrastructure Fund, and Australian Retirement Trust (ART) will enable the continued growth of Macquarie AirFinance by supporting its US$ 2.2 billion acquisition of an aircraft portfolio from ALAFCO Aviation Lease and Finance Company K.S.C.P. (ALAFCO). ALAFCO is an aircraft-leasing company, founded in Kuwait in 1992. TALAFCO’s CEO is Adel Ahmad Albanwan. ALAFCO is jointly owned by the Kuwait Finance House, Gulf Investment Corporation, and Kuwait Airways.

The Macquarie AirFinance shareholders will collectively contribute up to US$ 600 million of new equity to the business to facilitate its purchase of 53 current and next-generation commercial passenger aircraft and an order for 20 Boeing 737 MAX aircraft from ALAFCO. The transaction will be supported with a US$ 1.65 billion acquisition facility, underwritten by BNP Paribas, Citibank, MUFG Bank, and Natixis.

Macquarie AirFinance is a provider of aircraft leasing and financing solutions, with a portfolio comprised of 189 aircraft leased to 77 airlines across 47 countries and an existing orderbook of 59 Airbus A320neo and A220-300 aircraft. This transaction will enable the business to further expand and diversify its fleet of aircraft while improving the emissions profile, scale, average age, remaining lease term, and orderbook size of Macquarie AirFinance as the recovery of the aviation sector gains pace.

PGGM Infrastructure Fund became a shareholder in Macquarie AirFinance in 2019.

The transaction was approved by ALAFCO shareholders at an Ordinary General Assembly Meeting on December 27, 2022. Completion is expected during 2023, following the satisfaction of customary closing conditions.

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