Sep 06, 2018

Novus, Development Bank of Japan, NORD/LB and Boeing launch ‘Cedar Aviation Finance’ fund

A consortium composed of Novus Aviation Capital, Development Bank of Japan Inc., NORD/LB Norddeutsche Landesbank and The Boeing Company has launched Cedar Aviation Finance (CAF), a new junior debt fund designed to provide airlines and lessors with higher loan-to-value financing for the acquisition of Boeing manufactured aircraft. The fund will be managed by Novus and will provide junior and mezzanine loans to bridge the gap between equity and senior debt.


“We are delighted to work with global and long standing institutions to launch this landmark venture, which we believe will serve an important market need. With continued traffic growth and aircraft prices on an upward trajectory, coupled with the importance of preserving cash for airlines and lessors alike, this new venture is expected to be a popular financing tool. The initial strategic group is composed of an OEM, two prominent financial institutions from Europe and Asia, and a leading aircraft leasing platform, offering a very strong value proposition,” said Hani Kuzbari, Managing Director at Novus.


“We are excited about the launch of ‘Cedar Aviation Finance'. We believe that this strong and monumental partnership among Novus, Boeing, NORD/LB, and DBJ will support finance needs of many customers and lead the industry to a successful future,” said Masashi Kumagae, General Manager at Development Bank of Japan Inc.


Oliver Gruenke, Managing Director and Head of Origination for Aircraft Finance at NORD/LB commented: “If you want something new, you have to stop doing something old. And we evolved our business model. This innovative fund nicely proves the creativity and capability for financial evolution of its four founding partners. And: Understanding the needs of our customers, CAF has been tailored to create, provide and preserve value for airlines and lessors.”


“As we continue to see strong market demand for Boeing aircraft, Boeing is pleased to partner with industry leaders Novus, DBJ and NORD/LB to bring additional financing solutions for our customers around the world,” said Tim Myers, president of Boeing Capital Corporation.


CAF builds off of the market acceptance of similar financial products and the first transaction is expected to take place by the end of the third quarter this year.


About Cedar Aviation Finance (CAF)

A junior debt fund managed by Novus Aviation Capital, established by Novus, The Boeing Company, Development Bank of Japan Inc., and Norddeutsche Landesbank, Cedar Aviation Finance (CAF) facilitates funding of Boeing aircraft acquisitions at a high advance rate. The fund provides airline and leasing companies junior and mezzanine debt in a tax-neutral financing structure that bridges the gap between pure equity and senior debt.


About Novus Aviation Capital

With 24 years of aircraft leasing, financing and trading experience, Dubai-based Novus is one of the world’s fastest-growing aircraft leasing financing platforms in the world. Operating globally out of five offices in Europe, Asia and the Middle East, the company has an aircraft portfolio under the management of around 50 aircraft worth nearly $4 billion.


About The Boeing Company

The Boeing Company is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. Boeing has a long tradition of aerospace leadership and innovation and the company continues to expand its product line and services to meet emerging customer needs. Boeing Capital Corporation (BCC), a wholly owned subsidiary of Boeing, is a global provider of financial solutions. Drawing on its fifty years of comprehensive expertise, BCC ensures a range of efficient financial options are available for customers of Boeing products.


About Development Bank of Japan (DBJ)

DBJ is a Japanese government owned financial institution with a long history in providing financing to the aviation sector. The focused aviation team set up in 2011 to enhance DBJ’s aircraft financing activities globally has quickly grown to become recognized as one of the up-and-coming financiers in aviation circles, arranging deals across Asia, the Middle East, Europe and the Americas.


About NORD/LB

With total assets of EUR 160 billion, NORD/LB Norddeutsche Landesbank is one of Germany’s leading commercial banks. Its core business segments include structured finance in the energy and infrastructure sector, ship and aircraft finance, corporate client business, commercial real estate finance, capital market business, and private and commercial client business. The Bank has its head office in Hanover, Braunschweig, and Magdeburg. NORD/LB also has branches in Bremen, Oldenburg, Düsseldorf, Hamburg, Munich, Schwerin, and Stuttgart. Outside Germany, NORD/LB is active in Luxembourg with a covered bond bank (NORD/LB Covered Bond Bank) and also has offices in London, New York, Singapore, and Shanghai.

 

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