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Doric Aircraft Fund 2 - Fully Syndicated
HighlightsA particular highlight of this new investment opportunity is the long-term lease as well as the attractive USD 88 million (EUR 59.8 million) purchase price for the asset. With more than 50 airlines employing the A330-200, including Air China, Emirates, Qatar Airways and Air France/KLM, the aircraft can be considered extremely successful. Thanks to the model’s strong market penetration, there are many potential interested parties for this aircraft after the lease expires.
Asset
The asset is an A330-200, a modern medium to long range aircraft from the proven Airbus A330 series. The plane is equipped with two modern General Electric CF6-80E1 engines and is considered the most economic and quiet aircraft in its market segment. The plane was delivered to the airline Air Mauritius Ltd. (‘Air Mauritius’) on December 7th, 2007 and will be leased to the airline for ten years (with extension options of two to six years).
Lessee
Air Mauritius is the national flag carrier and, in terms of turnover, the largest business corporation of the Republic of Mauritius. Since its founding in 1967, Air Mauritius has greatly contributed to the successful growth of the island’s tourism which is central to the nation’s healthy economy. Air Mauritius currently flies to 27 international destinations in Europe, Asia, Africa and Australia.
Via both direct and indirect participations, the Republic of Mauritius is Air Mauritius’ majority shareholder. British Airways and Air France are also shareholders in the airline, which has been publicly listed since 1995.
Since gaining independence from the UK in 1968, the Republic of Mauritius has been a representative democracy. Moody’s rates Mauritius as Baa2 or ‘investment grade’ and, according to a recent study by the World Bank, Mauritius has a better economic climate than either France or Spain.
Debt Financing
The purchase price of the plane and the cost of setting up the company will be roughly 50% financed by a long-term Euro loan from Norddeutsche Landesbank. Interest will be fixed for the tenor of the loan. The debt financing will be fully amortised over the projected term of the fund.
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