NCB Capital enhances the aircraft leasing platform

The NCB Capital has announced that a vehicle advised by one of its subsidiaries has concluded an agreement for the acquisition of 19 commercial aircrafts from AerCap Holdings N.V., NCB Capital is a largest investment bank in Saudi Arabia with more than $40 trillion of assets under management and the world's largest asset manager in Shariah. (NYSE: AER). AerCap, the world leader in aviation leasing and financing, will provide the portfolio with technical and leasing management services.

The acquisition was organized and executed by NCB Capital in partnership with the Treasury Group of its parent bank, the National Commercial Bank (NCB), and is part-financed with a USD 500 million revolving Murabaha facility structured with Citibank and jointly arranged by Citibank and BNP Paribas. This is the first rotating warehouse compatible with the Shariah system in the globe to obtain worldwide airplanes, and is a key milestone in promoting the leasing and funding capacities of NCB Capital's aircraft.

A combination or mix of narrow and wide-bound, Airbus and Boeing, on lease to 17 separate airline companies in 16 jurisdictions includes an aircraft portfolio. This agreement marks the second transaction between NCB Capital and AerCap with which NCB Capital manages its overall portfolio to 40 aircraft.

In December 2017, NCB Capital's first 21-aircraft deal was followed by the launch of its landmark Aviation Fund I, a $2200 million fund that provided by KSA-based investors with an exposure to a distinctive asset class.

"These innovative transaction and new loan infrastructure compliant are reaffirmed by NCB Capital's engagement to be a key player in the local and regional asset management industries, said Sarah Al Suhaimi, chief executive officer of NCB Capital. We are happy to have partnered with major financial institutions and AerCap once again, He added.

"We are pleased to partner with NCB Capital in this second aviation transaction that allows the NCB Group to continue to provide our customers with innovative and market leadership alternatives as part of our continuing strategic cooperation," said Talal Al Khereiji, Head of NCB's Treaties Group.

"In this innovative second transaction, we are delighted to work with NCB Capital. It confirmed the worldwide attractiveness of our aviation resources and the AerCap platform's extent and scope, "says Aengus Kelly, CEO of AerCap. AerCap has sold or contracted to sell about $1.4 bn in mid-life assets to NCB since 2017 through these sales. We are grateful to NCB Capital for its confidence in AerCap, and looking forward to work for many years with the NCB Capital team, he added.
The deal was made easier through an entity appointing NCB Capital (DIFC) Limited as its asset manager for this transaction.