AFC Finances Five 737s For Unnamed Airline

Aviation Finance Company (AFC) has announced its financing for five 737-800s. The aircraft will go to a large international carrier with short- and long-haul operations globally, which wishes to be anonymous. The deal reflects the growth of the capital markets in aircraft financing. “[AFC] played an integral role [in] aligning interests and requirements of Boeing, the carrier and the investor. This transaction represents the core of structural changes around which AFC has built its business," said CEO Douglas Brennan. "With current uncertainty around bank financing, we expect ECA's to continue to play a major role, but the private placement markets represent a growing source of finance that will blossom to meet the needs of our most important customers: investors and airlines." Kostya Zolotusky, MD for capital markets development and leasing at Boeing Capital, agreed, adding: "We see the private-placement market as another important source of efficient financing for our customers. Recognition by capital markets investors of the strong performance of aircraft-backed securities along with growing opportunities to provide finance to leasing companies and global airlines drive the growth of the private-placement opportunities. This market should nicely compliment the EETC market by giving our customers tailored solutions to do smaller number of deliveries and yet achieve similar economics with larger transactions.

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