SHANNON, Ireland, June 28, 2018 -- GECAS, the commercial aircraft leasing arm of GE, together with Novus Aviation Capital, a Dubai-based aircraft leasing and financing company, today announced a debt financing agreement with Philippine Airlines (PAL). PK AirFinance, a GECAS company, will provide senior debt for the acquisition of four (4) 2018 Airbus A321-200neos, while Novus’ Tamweel Aviation Finance, a junior debt fund dedicated to the financing of Airbus aircraft, will extend a mezzanine loan for each aircraft.
The loan will finance PAL’s acquisition of the aircraft and spare engine, part of the airline’s strategy to grow its medium-range routes while modernizing its fleet. The first aircraft was delivered in May with the remaining three scheduled to deliver before the end of 2018.
“PK AirFinance has enjoyed long-standing relationships with both Philippine Airlines and Novus,” said Shinji Sato, Executive Manager - PK AirFinance Japan. “The opportunity to work with Novus to support PAL’s growth strategy is a natural extension to our relationship.”
“A strong fleet and strong partnerships are necessary building blocks for a 4-Star Global Airline,” said Jaime J. Bautista, President of Philippine Airlines. “We are glad to partner with PK AirFinance and Novus Aviation Capital in our acquisition of Airbus A321-200neos, and we welcome their support as we forge ahead with our network expansion program.”
“We are delighted to complete this transaction with both PAL and PK AirFinance. The combination of asset type and stakeholders involved in this transaction makes it appealing for both Novus and Tamweel Aviation Finance, one of the industry’s leading mezzanine loan provider. This deal is a true testament to the ability of the Novus platform to provide both operating and finance lease solutions to its airline customers,” said Hani Kuzbari, Managing Director at Novus Aviation Capital. “This debt structure is an attractive value proposition and we look forward to replicating this with both PK AirFinance and PAL on future transactions.”