ADGM HEADQUARTERED SIRIUS CLOSES FIRST BANK FACILITY WITH DEUTSCHE BANK TO FINANCE 5 AIRCRAFT

15 September 2021 – Abu Dhabi, United Arab Emirates 

Sirius Aviation Capital Holdings Limited (“Sirius”), a global aircraft lessor headquartered in Abu Dhabi Global Market (“ADGM”), today announced that one of its joint venture entities had closed its first bank facility with Deutsche Bank to refinance the acquisition of five (5) single-aisle aircraft which it had acquired in 2020. 

The five aircraft are on operating leases to three different carriers: three Boeing 737 NG’s with Southwest (US), one A320 with Spirit (US) and one A320 with Etihad (UAE). 

Sirius’ share of this joint venture was funded via its commitment from its anchor investor, Abu Dhabi Catalyst Partners (“ADCP”). ADCP is a joint venture between Mubadala Investment Company P.J.S.C. (a sovereign investor owned by the Government of Abu Dhabi) and Falcon Edge (a US investment company). 

Sirius commenced operations in ADGM in March 2020 and in less than 18 months has grown its fleet to 12 aircraft. Over the next three years it plans to grow its fleet to 100 aircraft. 

Kieran Ryan, Chief Financial Officer of Sirius commenting on the transaction and the growth of the business at ADGM said; 

“We are pleased to have executed our first facility with Deutsche Bank, as establishing this banking relationship is a significant milestone for the business. The successful conclusion of this debt transaction is both an endorsement of the underlying strength of the market for mid-life aircraft, and Sirius’s business strategy of leasing to top tier operators of these aircraft. 

Closing our first bank facility, despite the turbulence in the aviation industry due to the Covid-19 pandemic, further enhances the reputation of ADGM as a platform, not only to launch an international business, but also to financing transactions with global banks like Deutsche Bank. We would also like to acknowledge the outstanding support provided by the ADGM team, which has been fundamental to the development and growth of Sirius as a global aircraft lessor based in ADGM. It is further endorsement of ADGM being the “location of choice” for high-growth companies that want to establish a footprint in the region and develop relationships with global financial institutions. 

We also want to recognize and thank our anchor investor, Abu Dhabi Catalyst Partners (“ADCP”), for their outstanding support and excellent counsel to the Sirius team, as we grow our business in ADGM. 

Looking forward, we have a strong pipeline of attractive investment opportunities which we will deliver on in the coming months. We anticipate that air traffic volumes will continue to rise as vaccines are rolled out globally, and we plan to take advantage of this recovery to double our fleet to 25 aircraft in the next 12 months, and to over 100 in the next three years. We also will continue to work closely with our investors, shareholders, and the ADGM team to deliver these ambitious targets.” 

About Sirius 

Sirius Aviation Capital Holdings Limited is a global aircraft lessor headquartered in ADGM, Abud Dhabi, UAE. Sirius deploys innovative strategies in the financing and acquisition of aircraft, offering its investors attractive, risk-adjusted, stable, and transparent returns. Sirius primarily targets opportunities in mid-life short-haul aircraft. 

About Abu Dhabi Global Market (ADGM) 

Abu Dhabi Global Market (ADGM), an international financial centre (IFC) located in the capital city of the United Arab Emirates, opened for business on 21 October 2015. Established by a UAE Federal Decree as a broad-based financial centre, ADGM augments Abu Dhabi’s position as a global trade and business hub serving as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world. 

ADGM’s strategy is anchored by Abu Dhabi’s key strengths spanning over private banking, wealth management, asset management, derivatives and commodities trading, financial innovation, sustainability and more. Comprising four independent authorities: ADGM Authority, ADGM Courts, the Financial Services Regulatory Authority and the Registration Authority, ADGM as an IFC governs the entire 114 hectares (1.14sqkm) of Al Maryah Island which is a designated financial free zone. 

It enables registered financial and non-financial institutions, companies and entities to operate, innovate and succeed within an international regulatory framework based on common law. Since its inception, ADGM has been awarded the “Financial Centre of the Year (MENA)” for four consecutive years for its initiatives and contributions to the financial and capital markets industry in the region.* 

* Source: The Global Investor Middle East and North Africa (MENA) Awards 

About Abu Dhabi Catalyst Partners 

Abu Dhabi Catalyst Partners is a joint venture between Mubadala Investment Company, based in Abu Dhabi, and Falcon Edge Capital, based in New York City. ADCP was established in April 2019 with a dual mandate to achieve financial returns while also contributing to the overall development of the ADGM. ADCP seek to partner with top-tier investment firms and industry leading businesses who would benefit from developing a meaningful and sustainable presence in the ADGM. https://www.adcatalystpartners.com/ 

For Further Information: 

Nicholas McDonagh 

Teneo 

[email protected]

Tel +971(0) 50 457 2394 


Abu Dhabi Global Market headquartered Sirius acquires 10 aircraft during COVID

Abu Dhabi, United Arab Emirates – June 14, 2021

Sirius Aviation Capital Holdings Limited (“Sirius”), a global aircraft lessor headquartered in Abu Dhabi Global Market  (“ADGM”), announced that it has acquired ten (10) single-aisle, mid-life aircraft from BOC Aviation, a member of Bank  of China Group during the current Covid-19 pandemic.

To acquire these aircraft Sirius entered into joint ventures with seasoned aviation investors Corrum Capital and HPS  Investment Partners. Sirius’ share of the joint ventures was funded via its commitment from its anchor investor, Abu  Dhabi Catalyst Partners (“ADCP”). ADCP is a joint venture between Mubadala Investment Company and Falcon Edge  (a US investment company).

Sirius commenced operations in ADGM during March 2020 and in just over a year has grown its fleet to 10 aircraft and  over the next three years plans to grow its fleet to 100 aircraft. The acquisition underpins Sirius’ investment strategy  of acquiring in-demand, single-aisle, mid-life aircraft that are globally on lease to strong airline credits, enabling  investors to generate attractive risk adjusted returns.

Howard Millar, Chief Executive Officer of Sirius commenting on the growth of the business at ADGM said: “We are  delighted to have grown our fleet to 10 aircraft during the worst year in the history of commercial aviation. This is  testimony to the strength of our business model, which is to acquire aircraft on lease to top tier airline credits availing  of the attractive returns available in mid-life single aisle aircraft leasing.

The growth of our business during the most difficult year in commercial aviation history enhances the reputation of  ADGM as a platform to launch an international business and transact with leading financial services counterparties on  a global basis. We have been very impressed by the support and contribution of the ADGM team in the successful  launch and growth of the business. It is further recognition of ADGM, and Abu Dhabi, as the “location of choice” for  high-growth companies that want to establish a footprint in the region and develop their business on a global basis.

We also recognize and thank our anchor investor, Abu Dhabi Catalyst Partners(“ADCP”), for their foresight, vision, and  the tremendous support given to the Sirius team.

We continue to see attractive investment opportunities in aviation as traffic volumes recover due to the global roll out of vaccines. Sirius’ plans to more than double its fleet to more than 20 aircraft in the next 12 months, and to over 100  in the next three years. We look forward to working closely with our investors, shareholders, and the ADGM team to  deliver these ambitious targets.”

About Sirius 

Sirius Aviation Capital Holdings Limited is a global aircraft lessor headquarterd in ADGM. Sirius deploys innovative  strategies in the financing and acquisition of aircraft, offering investors attractive, risk-adjusted, stable, and  transparent returns. Sirius primarily targets opportunities in mid-life short-haul aircraft. www.siriusavcap.com

About Abu Dhabi Global Market (ADGM) 

Abu Dhabi Global Market (ADGM), an international financial centre (IFC) located in the capital city of the United Arab  Emirates, opened for business on 21 October 2015. Established by a UAE Federal Decree as a broad-based financial  centre, ADGM augments Abu Dhabi’s position as a global trade and business hub serving as a strategic link between  the growing economies of the Middle East, Africa and South Asia and the rest of the world. ADGM’s strategy is anchored by Abu Dhabi’s key strengths spanning over private banking, wealth management,  asset management, derivatives and commodities trading, financial innovation, sustainability and more. Comprising  four independent authorities: ADGM Authority, ADGM Courts, the Financial Services Regulatory Authority and the

Registration Authority, ADGM as an IFC governs the entire 114 hectares (1.14sqkm) of Al Maryah Island which is a  designated financial free zone.

It enables registered financial and non-financial institutions, companies and entities to operate, innovate and  succeed within an international regulatory framework based on common law. Since its inception, ADGM has been  awarded the “Financial Centre of the Year (MENA)” for four consecutive years for its initiatives and contributions to  the financial and capital markets industry in the region.*

* Source: The Global Investor Middle East and North Africa (MENA) Awards

About Corrum Capital 

Corrum Capital Management LLC is an independent, private investment firm with ~ $1.5bn of AUM and has co invested in 70+ aircraft. Corrum that takes an active and asset-level approach to cashflow-oriented investing. Corrum  Capital currently has active investments in commercial aviation leasing, railcar leasing, and asset- and collateral backed lending, including lending to the sports and entertainment industries, real estate lending, and trade and  receivables finance.

About HPS Investment Partners 

HPS Investment Partners is a leading global investment firm that seeks to provide creative capital solutions and  generate attractive risk-adjusted returns for our clients. It manages various strategies across the capital structure that  include syndicated leveraged loans and high yield bonds to privately negotiated senior secured debt and mezzanine  investments, asset-based leasing and private equity. The scale and breadth of its platform offers the flexibility to  invest in companies large and small, through standard or customized solutions. At HPS’ core, it shares a common  thread of intellectual rigor and discipline that enables it to create value for our clients, who have entrusted it with  approximately $69 billion of assets under management as of April 2021.

About Abu Dhabi Catalyst Partners 

Abu Dhabi Catalyst Partners is a joint venture between Mubadala Investment Company, based in Abu Dhabi,  and Falcon Edge Capital, based in New York City. ADCP was established in April 2019 with a dual mandate to achieve  financial returns while also contributing to the overall development of the ADGM. ADCP seek to partner with top-tier  investment firms and industry leading businesses who would benefit from developing a meaningful and sustainable  presence in the ADGM. https://www.adcatalystpartners.com/

For Further Information: 

Nicholas McDonagh
Teneo
[email protected]
Tel +971 504572394

Brendan Murphy
Teneo
[email protected]
Tel +353 872051111


Sirius targets 100 aircraft fleet over next three years

10 Jun 2021 11:32 GMT+01:00
Oliver Clark (London)

Sirius Aviation Capital plans to grow its fleet to 100 narrowbody aircraft within the next three years with chief executive Howard Millar eyeing opportunities to acquire assets from both lessors and airlines. In an interview with Cirium, Millar says he is confident that the Abu Dhabi-headquartered lessor can expand from a base of 10 aircraft currently to 25 by the end of 2021 and 100 units by 2024.
“Our plan is to continue to scale the platform within three years I certainly believe we should be looking at about 100 aircraft,” he says. Sirius specialises in investing in mid-life Boeing 737 NGs and Airbus A320s with leases attached. The lessor has purchased 10 aircraft so far: six Southwest, two Air New Zealand, one Spirit and one Etihad, all from BOC Aviation.
Beyond direct trades with lessors, Millar says Sirius is actively working on direct transactions with airlines. “We don’t just see ourselves as sourcing portfolios exclusively from other lessors, we want to engage directly with airlines who own a lot of mid-life aircraft and work with them in terms of efficiently managing their fleets,” he says.
Millar describes the opportunity as working with airlines that may want to manage their transition to a new aircraft order or want to finance existing owned aircraft. For example, an airline may want to sell an aircraft and lease it back for four years to bridge to an order for new A320-family Neo or 737 Max units. In other cases, the aircraft maybe under ECA financing or other types of traditional bank debt financing and that expires after 12 years and they are looking to put another financing structure in place on the aircraft, Millar adds. “I believe airlines are increasingly wary of what I would describe as pure financial investors, who really don’t understand the business, who are sourcing their money from various funds and private equity. They aren’t able to respond to the airline and deal with any issues that arise because they don’t have the technical knowledge and experience within their business,” he says.
Where Sirius does trade with other lessors, Millar notes that the company primarily conducts bilateral trades rather than competing with multiple other players. “We are not really interested in looking at the RFPs [request for proposals] that maybe issued by certain parties that are sent round to 40 or 50 parties. We are interested in bilateral transactions, we have proven we can price, negotiate, and are cash buyers who can complete transactions in short order,” he observes.
Even as the pandemic has placed unprecedented stress on airline’s balance sheets, the threat of climate change and environmental, social and governance (ESG) issues have continued to put pressure on the aviation sector to retire older units and replace them with more fuel efficient models. Millar is confident that this focus on new technology aircraft is not a threat to Sirius’s focus on mid – life (8 to 12 years old) narrowbodies as demand will outstrip supply from the OEMs. “If somebody decided that anything older than eight years old cannot fly anymore the whole aviation world would collapse, because Boeing and Airbus can’t manufacture them quickly enough to replace these aircraft”, he says.
Millar says that changing the sector is going to take time, and the 737 NG and A320 ceo models will be in operation for many years to come. As Sirius targets growth over the coming years, Millar says the lessor is well placed in the Abu Dhabi Global Market (“ADGM”), being at the global crossroads of
trade and markets. “We have direct access to pretty much of all of Asia – and as we know most of the orders are coming from Asia – and we would see that as a key target for us. But on the other hand then you have direct connectivity into Dublin which is the major centre of aircraft trading and where the market is”.
Millar sees opportunities to further expand the Sirius team in ADGM as the recovery in the aviation sector continues, the lessor also has an office in Dublin focused on aircraft trading. Sirius Aviation Capital is majority owned by its management team.
Abu Dhabi Catalyst Partners, a joint venture between Mubadala Investment Company (Abu Dhabi) and Falcon Edge Capital, New York, owns a significant minority stake. Millar says that Sirius’s shareholders have been incredibly supportive of its growth plans. He says that the company’s backers have invested permanent capital and accordingly are not looking for short terms return and exit, and are thus fully committed to the business for the long-term.


Sirius Aviation Capital Acquires 5 more Aircraft from BOC Aviation

Abu Dhabi, United Arab Emirates – May 14, 2021

Sirius Aviation Capital Holdings Limited (“Sirius”), a global aircraft lessor based in Abu Dhabi Global Market (“ADGM”), announced the acquisition of five (5) single-aisle, mid-life aircraft from BOC Aviation, a member of Bank of China Group (the “Acquisition”). This brings the total aircraft acquired from BOC Aviation to ten (10). To acquire these aircraft Sirius has entered into a joint venture with certain investment funds managed by HPS Investment Partners (“HPS”). HPS is a global investment firm with approximately $69 billion of assets under management.

Sirius’ share of the joint venture was funded via its commitment from its anchor investor, Abu Dhabi Catalyst Partners (“ADCP”). ADCP is a joint venture between Mubadala Investment Company P.J.S.C. (a sovereign investor owned by the Government of Abu Dhabi and Falcon Edge (a US investment company).

The Acquisition underpins Sirius’ investment strategy of acquiring in-demand, single-aisle, mid-life aircraft that are globally on lease to strong airline credits, enabling investors to generate attractive risk adjusted returns.

Edward Coughlan, Chief Commercial Officer & Deputy CEO of Sirius commented on the transaction:

“We are pleased to have entered into the joint venture with HPS to acquire these aircraft on lease to top tier airline credits availing of the attractive returns available in mid-life single aisle aircraft leasing. HPS is a leading global investment firm with significant aviation investment experience. The aircraft portfolio is a mix of the in-demand Boeing 737s and Airbus A320s and are leased to best-in-class airline credits including Southwest Airlines in the US and Air New Zealand. We look forward to building on the relationship with HPS over the coming years by leveraging our industry relationships to, invest in aircraft PLB’s (Purchase and Leasebacks) directly with airlines, acquire aircraft in portfolio opportunities, while delivering attractive returns for our respective investors.”

 

About Sirius Aviation Capital  

Sirius Aviation Capital Holdings Limited is a global aircraft lessor based in Abu Dhabi Global Market (“ADGM”). Sirius deploys innovative strategies in the financing and acquisition of aircraft offering investors in its funds attractive, risk adjusted stable and transparent returns.  Sirius primarily targets opportunities in mid-life short-haul aircraft.

 

About HPS Investment Partners

HPS Investment Partners is a leading global investment firm that seeks to provide creative capital solutions and generate attractive risk-adjusted returns for our clients. We manage various strategies across the capital structure that include syndicated leveraged loans and high yield bonds to privately negotiated senior secured debt and mezzanine investments, asset-based leasing and private equity. The scale and breadth of our platform offers the flexibility to invest in companies large and small, through standard or customized solutions. At our core, we share a common thread of intellectual rigor and discipline that enables us to create value for our clients, who have entrusted us with approximately $69 billion of assets under management as of April 2021.

 

About Abu Dhabi Catalyst Partners

Abu Dhabi Catalyst Partners is a joint venture between Mubadala Investment Company, based in Abu Dhabi, and Falcon Edge Capital, based in New York City. ADCP was established in April 2019 with a dual mandate to achieve financial returns while also contributing to the overall development of the ADGM. ADCP seek to partner with top-tier investment firms and industry leading businesses who would benefit from developing a meaningful and sustainable presence in the ADGM. https://www.adcatalystpartners.com/

 

For Further Information:

Brendan Murphy
Teneo
[email protected]
Tel +353872051111


Sirius Aviation Capital Acquires 5 Aircraft from BOC Aviation

Abu Dhabi, United Arab Emirates – January 28, 2021

Sirius Aviation Capital (“Sirius”), a global aircraft leasing platform based in Abu Dhabi Global Market, announced the acquisition of five (5) single-aisle, mid-life aircraft from BOC Aviation, a member of Bank of China Group (the “Acquisition”).  As part of the Acquisition, Sirius has entered into a joint venture with Carolous Aviation Leasing LLC (“Carolous”), a portfolio company of Corrum Capital Management LLC (“Corrum Capital”).  Corrum Capital is a US-based investment firm active in the aviation industry.

Sirius’ share of the joint venture was funded via its commitment from its anchor investor, Abu Dhabi Catalyst Partners (“ADCP”). ADCP is a joint venture between Falcon Edge (a US investment company) and Mubadala Investment Company P.J.S.C. (the sovereign wealth fund of Abu Dhabi).

The Acquisition underpins Sirius’ investment strategy of acquiring in demand single-aisle, mid-life aircraft that are globally on lease to strong airline credits, enabling investors to generate attractive risk – adjusted returns.

Howard Millar, Chief Executive Officer of Sirius commented on the transaction:

“We are pleased to have entered into a joint venture with Carolous to acquire these aircraft and avail of the attractive returns available in mid-life singe aisle aircraft leasing. Corrum Capital is an experienced aviation investor and an ideal partner. We have launched this joint venture via the purchase of five single aisle aircraft from BOC Aviation and the aircraft are a mix of the in-demand Boeing 737s and Airbus A320s and are leased to strong airline credits (four of the aircraft are in the US and one in the UAE). We look forward to working with the Corrum team over the coming years to acquire and lease more aircraft opportunities to generate attractive returns for our respective investors.”

The five aircraft are on lease to three different carriers: three Boeing 737 NG’s with Southwest (US), one A320 with Spirit (US) and one A320 with Etihad (UAE). The aircraft are on average 10 years old and have a remaining lease term of approximately four years.

Jason Cipriani, Co-Managing Partner of Corrum Capital, said:

“We are pleased to have entered into a joint venture with Sirius and ACDP to acquire this high-quality aircraft portfolio with strong airline counterparties.  The strategy of the joint venture is consistent with our focus on mid-life narrowbody aircraft on lease to high quality airlines globally.  Sirius has a highly experienced team, and we look forward to a continued mutually beneficial relationship.”

 

About Sirius Aviation Capital  

Sirius Aviation Capital Holdings Limited is a global aircraft lessor based in Abu Dhabi Global Market (“ADGM”). Sirius deploys innovative strategies in the financing and acquisition of aircraft offering investors in its funds attractive, risk adjusted stable and transparent returns.  Sirius primarily targets opportunities in mid-life short-haul aircraft.

 

About Corrum Capital Management LLC

Corrum Capital is an independent, private investment firm primarily focused on cashflow-oriented investment strategies with structural or collateralized downside protection.  We take an active, dynamic role in the key decision making, risk management, and strategic direction of our portfolio companies and joint ventures.  Corrum Capital is primarily focused on investments in transportation infrastructure including aviation, and specialty finance, including lending against assets in the sports, music, & entertainment space.   https://www.corrumcapital.com/

 

About Abu Dhabi Catalyst Partners

Abu Dhabi Catalyst Partners is a joint venture between Mubadala Investment Company based in Abu Dhabi and Falcon Edge Capital, based in New York City. ADCP was established in April 2019.ADCP has a dual mandate to achieve financial returns while also contributing to the overall development of the Abu Dhabi Global Market (“ADGM”). ADCP seek to partner with top-tier investment firms and industry leading businesses who would benefit from developing a meaningful and sustainable presence in the ADGM. https://www.adcatalystpartners.com/