PIMCO and GECAS to create US$3 billion aviation leasing investment platform

Investment Management PIMCO and GE Capital Aviation Services (GECAS), have reached a preliminary agreement to develop an aviation leasing platform to support up to US$3 billion in aircraft asset financings. The transaction is subject to customary closing conditions and receipt of required regulatory approvals.

This strategic investment platform will enable GECAS and PIMCO­-advised accounts to acquire new and young fuel-efficient aircraft to meet the needs of a diverse set of global airlines over many years.

The platform looks to provide much-needed financing for airlines which are looking to upgrade their fleets with young and new aircraft. The portfolio will initially focus on narrow-body aircraft while allowing flexibility to invest in attractive opportunities in the wide-body market. PIMCO and GECAS will consider a range of investment criteria including an airline’s assets and credit quality and also geographic factors.

PIMCO is already one of the world’s largest investors in aviation-backed debt and its presence in aviation financing markets combined with GECAS’ leadership role in the aircraft-leasing segment will provide this joint platform enormous flexibility to provide funding to the global airline industry. GECAS will source transactions for the platform, act as servicer and provide asset management services for the platform.

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