Aircraft asset-backed lending available to retail investors for the first time, with capital equipment to follow
London, July 2014: Today, ablrate.com launches the world’s first platform for retail and small institutional investors to invest in aircraft transactions. This innovative new investment tool will revolutionise the financing of aircraft by allowing investors to invest directly in aircraft assets. Ablrate.com will also offer direct investment opportunities in capital equipment transactions. Open from today for registrations, the first aircraft deal will go live in during the week beginning 14th July.
With interest rates remaining low, investors are on the hunt for investments which generate better returns. Aircraft are an ideal opportunity, as underlying demand for passenger travel drives growth across the globe. In 2013 over three billion passengers took to the skies and this is expected to double by 2030. The ablrate.com platform will feature aircraft deals for ATR aircraft in particular, one of the best performing turboprop aeroplanes on the market. ATRs were chosen because they are in strong demand on the used market, they are tried and tested with over 25 million miles flown by this aircraft type, and ATR has built a strong support and maintenance infrastructure for its customers.
ATRs along with other regional aircraft account globally for 30% of passenger miles travelled, equating to over 900 million passengers.
Ablrate.com is designed to offer lenders access to high-quality asset backed loans. The platform offers two types of transactions for investors; auction and fixed rate loans. Borrowers will be either respected leasing companies or lessees themselves. In the event of a lessee going directly onto the platform, the aircraft asset will be managed by Phoenix Aircraft Leasing Pte Limited a well-known and successful aircraft lessor. For capital equipment, assets will be managed by DS Finance and Leasing headed by the former Managing Director of GE Capital Europe. Thanks to these partnerships with the two firms, ablrate.com already has a deal pipeline worth up to £50 million for investors to gain access to. The first deal that will go live on the platform will finance an ATR-42 turboprop leased to a government airline with an indicative interest rate of 10% per annum for investors.
All transactions on the platform are given ratings to inform lenders of the quality of the deal and lenders can view all deal information to allow them to make an informed decision before investing. The ablrate.com platform also includes a secondary market for lending members to trade existing loan agreements.
David Bradley-Ward, co-founder and director, ablrate.com said: “Aircraft are an evocative asset as well as a lucrative one, and with the advent of peer lending, we are able to offer everyday investors, asset managers and institutions unique access to this asset class. Thanks to the partnerships we’ve built up with leasing firms like Phoenix and DS Finance and Leasing, we’ve been able to secure a high quality and well stocked deal pipeline, covering both aircraft and capital equipment. Rather than seeking to cover a broad range of assets and investment types, we’ve taken the decision to focus on our core areas of knowledge, and deliver excellent deals to our investor community.”
First Aircraft Deal Launched on ablrate.com, Enabling Investors to Buy into the Aircraft Dream
London, 22 July 2014. Following its recent successful launch, ablrate.com has added a first aircraft deal to its peer-lending portal, making it the first ever transaction of this kind to be open to investors. This financing opportunity is for an ATR 42-500 turboprop, which is being leased by SATENA, a government backed regional airline in Colombia. The deal is backed by a major European bank, and will pay a rate of 10% interest per annum, over a period of six years. Since its launch, ablrate.com has seen strong interest from investors, including family offices and small institutions. While some have been attracted by the ability to invest for the first time ever in aircraft transactions, others are keen to explore ways of disintermediating their investments, cutting out the middlemen, and ensuring a strong return on their investment.