NCB Capital, the investment arm of Saudi’s biggest bank National Commercial Bank, has launched a new fund worth $200 million to invest in aviation.
NCB Capital Aviation Fund I was raised through a private placement, the bank said in a statement.
The fund offers investors an opportunity to invest in the global aircraft leasing industry, where they can profit from the proceeds received from the leasing of aircrafts. The business of aircraft leasing is booming, thanks to demand for global air travel.
According to statista.com, the aircraft leasing industry was valued at $36.24 billion. The largest order places at the 2017 Dubai Airshow was not from an airline but from ‘Indigo partners’, which is U.S.- based aircraft leasing company.
In December 2017, Peregrine Aviation Topco Limited—an NCB Capital Limited managed company—acquired a $800 million portfolio of 21 aircraft in December 2017. (Add hyperlink
The portfolio comprises a mix of narrow-body and wide-body Airbus and Boeing aircraft on lease to 14 airlines across the world. AerCap Holdings N.V., an aircraft leasing and aviation finance firm, is providing technical and lease management services. AerCap holds a minority stake in the portfolio.
Sarah Al Suhaimi, NCB Capital’s Chief Executive Officer and chairperson of the Saudi Stock exchange said “We were delighted to offer this unique investment opportunity to our investors. The fund attracted a large number of investors, highlighting the appeal of this differentiated opportunity. NCB Capital is committed to offering a robust platform of innovative and diverse investment solutions that meet our clients’ needs.”