Novus Aviation Capital, one of the world's fastest-growing aircraft leasing financing platforms, together with Development Bank of Japan, Germany's Nord/LB and Boeing, launched a junior debt fund for airlines and lessors.
“With continued traffic growth and aircraft prices on an upward trajectory, coupled with the importance of preserving cash for airlines and lessors alike, this new venture is expected to be a popular financing tool,” said Hani Kuzbari, managing director at Novus.
The Cedar Aviation Finance (Caf) fund will provide airlines and lessors with higher loan-to-value financing for Boeing aircraft. It will be managed by Novus and will provide junior and mezzanine loans to bridge the gap between equity and senior debt for aircraft acquisitions. The companies said Caf's first transaction is expected by the end of the third quarter.
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As oil prices have rebounded, the International Air Transport Association cut its forecast for total profits for the global airline sector in 2018 by 12 per cent in June.
“If you want something new, you have to stop doing something old. And we evolved our business model,” said Oliver Gruenke, managing director and head of origination for aircraft finance at Nord/LB.
“[The fund] has been tailored to create, provide and preserve value for airlines and lessors.”
Caf is the third such fund for Novus. The financier has two other junior debt funds for the financing of Airbus aircraft.
Company Profile
Name: HyveGeo
Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government
Six pitfalls to avoid when trading company stocks
Following fashion
Investing is cyclical, buying last year's winners often means holding this year's losers.
Losing your balance
You end up with too much exposure to an individual company or sector that has taken your fancy.
Being over active
If you chop and change your portfolio too often, dealing charges will eat up your gains.
Running your losers
Investors hate admitting mistakes and hold onto bad stocks hoping they will come good.
Selling in a panic
If you sell up when the market drops, you have locked yourself out of the recovery.
Timing the market
Even the best investor in the world cannot consistently call market movements.
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
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COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
Medicus AI
Started: 2016
Founder(s): Dr Baher Al Hakim, Dr Nadine Nehme and Makram Saleh
Based: Vienna, Austria; started in Dubai
Sector: Health Tech
Staff: 119
Funding: €7.7 million (Dh31m)
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Frida
Director: Carla Gutierrez
Starring: Frida Kahlo
Rating: 4/5
