Global Broad Body Bond PIMCO entered into some kind of long-term (courier) trade. On Monday, the company announced that it had partnered with GE’s lessor of aircraft assets. GE Capital Aviation Services (GECAS) to develop a aircraft rental platform that will support up to $ 3 billion in financing of aeronautical assets.
According to a joint statement from the two companies, this platform will allow accounts advised by GECAS and PIMCO to acquire new and young fuel efficient aircraft to meet the needs of a diverse set of global airlines over many years.
The platform seeks to provide much-needed funding to airlines looking to modernize their fleets with young and new aircraft. The portfolio will initially focus on narrow-body aircraft, while allowing the flexibility to invest in attractive opportunities in the widebody market.
PIMCO and GECAS will take into consideration a range of investment criteria, including the assets and credit quality of an airline, as well as geographic factors.
Fewer options for airlines
PIMCO is already one of the world’s largest aviation investors debt and its presence in the aviation finance markets, combined with GECAS ‘leadership role in the aircraft leasing segment, will provide enormous flexibility to the platform to provide finance to the global transportation industry. air.
GECAS will provide transactions for the platform, act as a servicer and provide asset management services for the platform.
“As the struggles of the airline industry with the effects of the COVID-19 pandemic, the PIMCO-GECAS platform will inject critical liquidity into this critical industry by providing financing solutions at a time when traditional financing options for airlines are less plentiful, ”said Dan Ivascyn, Group Chief Investment Officer PIMCO. “Aircraft remain an attractive asset class in a critical infrastructure sector supported by strong long-term growth engines. GECAS ‘expertise as a world-class aircraft lessor aligns with our long-standing strategy of investing in aviation finance.
“We are delighted to partner with a leading institutional investor such as PIMCO in this strategic relationship that will enable opportunistic games to support our airline customers around the world,” said Greg Conlon, President and CEO by GECAS. “Although GECAS maintains a leading position in the sector, this platform will allow us to continue to provide our airline customers with the aircraft necessary to maintain their franchises. “
This new multi-billion dollar investment platform follows significant allocations to aviation funds from institutional investors in recent months. Castlelake’s fourth closed-end aviation asset fund, which acquires, manages and leases mid-life aircraft and engines, has received commitments from large US coastal pension funds, as has a similar closed-end fund managed by Carlyle Aviation Partners.