Aero International (Regional)has taken the first step towards establishing an aircraft-financing arm, signing an initial agreement with the Newcourt Credit Group to set up a turboprop-leasing operation.
Under a memorandum of understanding signed at the Paris air show on 18 June, AI(R)will work with US finance house Newcourt to establish a vehicle to offer preferred lease financing on the ATR turoboprop family. AI(R)estimates that the total market for new and used turboprops in the 40- to 70-seat range came in at around $1.5 billion in 1996, of which ATR took "approximately half".
Brazilian manufacturer Embraer has raised its first-ever foreign funding, with the issue of a $70 million international bond secured against its $375 million EMB-145 order from Continental Express.
The bond is just the first package in an overall transaction worth up to $200 million as further notes are issued. The initial bond issue was managed by Bozano-Simonsen, the financial institution which owns 25% of Embraer.
Source: Flight International
