Pengana Capital's (Pengana) credit strategies team has established an international airline sector investment vehicle for institutional investors.
The diversified funds manager has completed a debt transaction that involves the partial financing of four A 330-300 aircraft leased to Singapore Airlines.
As a result an investment vehicle has been established for institutional investors to raise and structure a mezzanine loan tranche as part of an existing US$300 million facility.
The deal was struck after Pengana worked with four major transportation banks based across several countries and a large-scale global lessor.
"There is a growing recognition by investors that aircraft leasing can be an attractive investment because of its flexibility, the countercyclical nature of the lead times in setting up the finance and duration of the leasing arrangements," Pengana chief executive Russel Pillemer said.
"In addition, there seems to be a preference by some airlines to lease rather than purchase which provides additional incentive for sophisticated investors."
The credit strategies team led by Simon Robinson is on the hunt for more transportation sector mandates for institutional investors.
The team is made up of four former managers from Zurich Capital Partners including Victor Shkolnik, Linh Le and Kevin Barry.
