- CDPQ to provide strategic capital over four years to create an
aircraft leasing and financing platform alongside world class
operator GECAS
- Platform will provide GECAS with increased flexibility to
support future growth
- Investment marks new milestone in the strategic relationship
between CDPQ and GE
MONTRÉAL and SHANNON, Ireland,
June 19, 2017 /CNW Telbec/
- Caisse de dépôt et placement du Québec (CDPQ), a leading
institutional asset manager, and GE Capital Aviation Services
(GECAS), a world leading aircraft leasing company, announced today
that they have signed a commitment letter to create a USD 2-billion global aircraft financing platform.
The transaction is subject to conditions including any required
regulatory approvals.
This new platform, to be named Einn Volant Aircraft Leasing
(EVAL), will be involved in the acquisition of modern fuel
efficient aircraft from a diverse set of global airlines and in
leasing them back to such airlines under long-term leases. GECAS
will source the transactions and, under a sistership condition,
will invest in aircraft ownership opportunities alongside the
platform to further align its interests with those of EVAL. GECAS
will also act as servicer for the platform.
EVAL will provide GECAS with the flexibility to finance future
growth and opportunities, while serving as an entry point for CDPQ
into the aircraft leasing and financing industry. In addition, it
represents a key step in the expansion of the strategic
relationship between GE and CDPQ, which has been built over several
years.
"This platform will provide financing solutions to airlines to
help support the growth of their fleet and answer essential
industry needs. The high-quality aircraft will be chosen for their
ability to withstand short-term cyclicality in a sector underpinned
by strong long-term growth drivers," said Michael Sabia, President and Chief Executive
Officer of CDPQ. "Through this platform, CDPQ's stable capital and
GECAS' extensive expertise and network will combine to identify the
best opportunities globally. Working with world class operators
such as GE is a fundamental part of our investment strategy, and
this announcement is yet another example of this strategy in
action."
"This new platform will enable continued growth and development
of our global customer relationships," said Alec Burger, President & CEO of GECAS. "We
are delighted CDPQ will be our strategic partner in this exciting
venture, which is a natural expansion of the relationship between
the highly regarded pension fund manager and GE."
Goldman Sachs & Co. LLC and Bank of America Merrill Lynch
advised GECAS on the transaction. Clifford
Chance, Milbank, Tweed, Hadley & McCloy, Torys, Walkers
and Lavery provided legal advice. E&Y provided tax advice.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de
dépôt et placement du Québec (CDPQ) is a long-term institutional
investor that manages funds primarily for public and parapublic
pension and insurance plans. As at December 31, 2016, it held
C$270.7 billion in net assets. As one
of Canada's leading institutional
fund managers, CDPQ invests globally in major financial markets,
private equity, infrastructure and real estate. For more
information, visit cdpq.com, follow us on Twitter @LaCDPQ or
consult our Facebook or LinkedIn pages.
ABOUT GE CAPITAL AVIATION SERVICES
GE Capital Aviation
Services (GECAS) is a world leader in aviation leasing and
financing. With 50 years of aviation finance experience, GECAS
offers a wide range of aircraft types including narrow-bodies,
wide-bodies, regional jets, turboprops, freighters and helicopters,
plus multiple financing products and services including operating
leases, purchase/leasebacks, secured debt financing, capital
markets, engine leasing, airframe parts management and
airport/airline consulting. GECAS owns or services a fleet of over
1,950 aircraft (1,660 fixed wing/ 306 rotary wing) in operation or
on order, plus provides loans collateralized on an additional ~400
aircraft. GECAS serves 264 customers in over 75 countries from a
network of 26 offices. gecas.com
GE (NYSE: GE) is the world's Digital Industrial
Company, transforming industry with software-defined
machines and solutions that are connected, responsive and
predictive. GE is organized around a global exchange of
knowledge, the "GE Store," through which each business shares and
accesses the same technology, markets, structure and intellect.
Each invention further fuels innovation and application across our
industrial sectors. With people, services, technology and scale, GE
delivers better outcomes for customers by speaking the language of
industry. ge.com
SOURCE Caisse de dépôt et placement du Québec