NBAD and DVB will act as 50%-50% joint venture partners in establishing and managing the fund. NBAD and DVB will also proportionately invest in the fund alongside the investor base from the UAE and other GCC countries. It is expected that the fund will acquire approximately $1 billion in assets over the next two years
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National Bank of Abu Dhabi (NBAD) and DVB Bank SE (DVB) have signed an agreement to launch a new aviation investment fund, which will invest in aviation assets, principally aircraft and engines on lease to international airlines.
NBAD and DVB will act as 50%-50% joint venture partners in establishing and managing the fund. As sponsors, NBAD and DVB will also proportionately invest in the fund alongside the investor base primarily from the UAE and other GCC countries.
It is expected that the fund will acquire approximately $1bn in assets over the next two years. The fund represents the first major cooperation between NBAD and DVB, and both organisations bring complimentary skills and expertise to the fund.
Ranked as one of the top 50 safest banks in the world, NBAD currently operates across 13 countries on four continents. It has a broad range of products and services to proactively suit the demands of its growing client base.
DVB Bank SE is the leading global specialist in international transport finance. It offers integrated financing solutions and advisory services in respect of Aviation, Shipping and Land Transport.
DVB is a market leader in the aviation finance sector and has received several awards for innovative financings, including Middle East Debt Deal of the Year (2008) by Jane's Transport Finance.
"We are very keen on working in partnership with the best in class, and in this regard we are delighted to have DVB, a prestigious name in the aviation financing industry, as a partner and co-investor in this important new fund,"
said Mr. Mark Yassin, Senior General Manager of NBAD's Corporate & Investment Banking Division.
"We are committed to supporting the aviation industry as well as to bring high quality investment opportunities to our clients. We look forward to providing much needed capital to the industry," Mr. Yassin explained.
"NBAD's outstanding loans for transport sector increased to Dhs6.36bn by the end of 2008 compared to Dhs5.16bn in 2007. This demonstrates NBAD commitment to keep pace with the development of the UAE as it plays a major role in building the country," Mr. Yassin concluded.
"At DVB, we are delighted to be working with the number one banking institution in the Middle East on this exciting new venture," said Mr. Bertrand Grabowski, Member of the Board of Managing Directors of DVB.
"DVB and NBAD recognise the opportunity to provide both much needed capital to the industry and bring new investment opportunities in aviation to the market. We believe this is an opportune time to be investing in aviation assets," he added.
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