A leasing business specialising in second-hand aircraft and run by Ryanair’s former deputy CEO is raising US$250mln ahead of an IPO in London next month.
Sirius Aircraft Leasing Fund Limited will focus on single-aisle aircraft, a plane size increasingly used by airlines such as British Airways owner IAG and Lufthansa it says.
SACHL said leasing of single-aisle aircraft such as Boeing 737s and Airbus 320s that seat around 200 passengers makes sense due to the cost savings, the value of the engines and maintenance savings involved.
Target returns will be 10% annually including an 8% dividend yield.
Howard Miller, who was both deputy CEO and chief financial officer in a 23-year career at no-frills airline Ryanair, will head the fund’s investment adviser Sirius Aviation Capital Holdings Limited (SACHL).
Patrick O’Brien, a former senior tax partner at KPMG Ireland, will be SACHL’s chairman, while Edward Coughlan formerly of Seraph Aviation will be COO.
“Globally we intend to leverage this capability to access portfolios of in-demand, single-aisle aircraft (with leases attached), principally from lessors disposing of older aircraft in order to maintain the average age of their fleet.
“We are currently assessing a number of attractive portfolios and anticipate that the funds raised will be deployed within 6 months of Admission."
Borrowings of up to 50% of the fleet's value will help to boost returns, it said.
Shares are expected to start trading on the premium section of London’s main market in early November.