As part of the Ishka Aviation Finance Conference in London from the 9th to 10th of April, Victoria Goodenough, Executive Director, Aviation Syndication EMEA at Natixis, shares her views on the aviation financing sector and current opportunities present in the today’s market.
What structures are available to European investors?
For European investors, there are multiple structures available to gain exposure in this growing sector. Natixis offers a comprehensive range of solutions across the capital markets, with over 40 years legacy strength in the sector and a track record of delivering industry leading advisory and financial solutions to clients.
Typically, clients can benefit from senior and junior secured debt structures, tax advantaged financings, insurance enhanced facilities, unsecured financings and sourcing of equity investment. Unsecured bond issuances, EETC and ABS structures are examples of how lessors and airlines can access the Debt Capital Markets. The diverse structures available provide investment opportunities for parties that seek returns from a robust alternative investment, contributing to the diversification of investment portfolios.
What opportunities are present in today’s market?
Aviation financing performs a vital function in what is a growth sector, operating on a truly global scale. Air travel volumes have more than doubled in the past 15 years, in part due to the consistent global growth of the Middle Class and the associated growing desire for international transportation and connectivity. Aligning interests between issuers and investors is essential to support the investment required for the long-term forecast growth of the industry.
An interesting prospect for investors with a long-term horizon
Aviation finance presents an interesting prospect for investors with a long-term horizon and the appetite for robust assets. Financial institutions have an important role to play in this sector, connecting both airlines and lessors to the public and private capital markets; ensuring they benefit from diversified sources of capital, in addition to providing pension funds, insurance companies and asset managers with the opportunity to benefit from this unique investment class.