Each year the joint venture will consider financing specific deliveries in compliance with agreed investment criteria and on terms defined by reference to an underwriting model which specifies the loan to value ratio, pricing and the amount of junior debt to be retained in equal shares by Avionâ€™s participants or their affiliates after syndication of the senior debt in the market.
Avion Capital has been incorporated in Ireland and its operational base is in Dublin. Mr Colin Thaine has been appointed the CEO; he is a former head of aircraft finance at the London office of the English law firm, Denton Wilde Sapte. He brings 30 years of aviation experience to the joint venture. His duties shall include the negotiation of documentation with customers and the management of the portfolio of Avion.
The establishment of this new financing vehicle is wholly consistent with the existing Airbus customer finance strategy of looking to the financial markets to finance the acquisition of its customersâ€™ aircraft and holding financing only when necessary and selling down exposures as soon as the market permits.
Benoit Debains, SVP, Finance of Airbus said Avion Capital will provide Airbus with a further tool enabling it to meet the financing needs of our customers in these difficult market conditions supplementing the current customer support already offered by our relationship international banks and financial institutions and by our wholly owned subsidiary Airbus Financial Services. We are very pleased to secure the participation in a common project of long term partners and experienced aircraft financing institutions from Europe and the United States.
Christian Murach, SVP, Kreditanstalt fÃ¼r Wiederaufbau 's Head of Transportation said "Avion Capital stands for an innovative product in a challenging market. It signifies an important expansion of KfWâ€™s product range in aircraft finance. The Bank considers the cooperation among longstanding partners as well as the combination of their different background of experience in the industry as a key factor of this new financing vehicle.
Airbus is an EADS joint Company with BAE Systems. Avion Capital: A New Financing Tool For Airbus