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Nordic lessor secures $0.5bn loan

Nordic Aviation Capital says the US$470 million loan will “increase public knowledge of the regional aviation market”.

Two months after gaining the government of Singapore as a “significant minority investor”, and less than two weeks after confirming a $156mn order for three next-gen E190 aircraft, the aircraft lessor Nordic Aviation Capital has managed to secure a loan of almost half a billion dollars to fund future growth.

PFA, Denmark’s biggest customer-owned pensions company, has agreed to a financing agreement of a US$470 million loan to further strengthen the lessor’s funding profile and capital base.

The new financing is part of NAC’s strategy to raise longer term financing to build on its financial profile and support the future growth of the company.

At the same time, the deal coincides with PFA’s own strategy to invest in what it say are well-performing companies with strong partners.

“This is another significant transaction for NAC. Having been able to attract PFA as a single lender reinforces the increased public knowledge of not only the regional aviation market but more particularly NAC,” says Steve Gorman, Nordic Aviation Capital’s chief funding officer.

CEO Søren M Overgaard says the loan “will support NAC’s business model as we continue to grow our customer base”.

Leading lessor
Nordic Aviation Capital brands itself as “the industry’s leading regional aircraft lessor”, serving over 70 airlines in 50 countries.

The company provides planes to well-established carriers such as British Airways, Air Canada, LOT, Azul, Lufthansa, Alitalia, Garuda, Flybe, Aeroméxico and airBaltic, as well as major regional carriers including Air Nostrum and Widerøe.

Its fleet of almost 500 planes includes E170, E175, E190, E195, ATR 42, ATR 72, Bombardier Dash 8, CRJ900, CRJ1000 and A220 aircraft and it is the biggest owner and lessor of both ATR and Bombardier aircraft in the world.

PFA, meanwhile, is the biggest commercial pension company in Denmark with more than DKK 500 billion (€67 billion) under management and 1.2 million individual customers.

It is “working determinedly” on increasing its number of “alternative investments” and today this portfolio amounts to more than DKK 35 billion across private equity, infrastructure and private credit. The aim is to invest DKK 10-15 billion per year in alternative investments.

Examples of significant alternative investments it has been involved with in recent years include the acquisition of TDC and investments in Nykredit, Interpark, Danish Ship Finance, Avantor and Walney Extension Offshore Wind Farm.

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