Investec Capital Markets assists Comair in funding four Boeing 737-800 aircrafts

Investec Capital Markets today announced it had successfully implemented the pre delivery finance transaction for an initial four new Boeing 737-800 aircraft for Comair, the operator of British Airways in SA and budget airline kulula.com. Investec Capital Markets also announced it had been appointed lead arranger to Comair for the term debt finance, which will be supported by a credit guarantee from the Export-Import Bank of the United States (Ex-Im).

Commenting on the deal, Investec Capital Markets’ head of aviation finance, Melanie Humphries said: “Pre delivery finance is a challenging space. Investec is proud to be associated with Comair and to be the lead arranger in a transaction of this magnitude.”

The new fleet of Boeing 737-800 will be part financed through the Ex-Im backed term debt finance, with the balance through Comair’s own resources. Investec, which has enjoyed a solid relationship with Comair exceeding 15 years, is currently structuring the term debt facility in consultation with the airline operator. Requests for proposals will be issued to the local and international banking market in early 2011 for the Ex-Im backed term debt finance required to purchase the new fleet.

Investec is arguably recognised as one of the top 10 aviation banks worldwide. This transaction complements Investec’s strategy of supporting South African and African carriers in their fleet acquisition and renewal efforts.

“There seems to be considerable appetite to support the Ex-Im backed term funding to Comair. We are thrilled to be partnering with Comair in their fundraising efforts on their new fleet of Boeing 737-800’s,” said Humphries.

Erik Venter, joint CEO at Comair said: “We are most pleased to have partnered Investec in a deal that will ultimately increase our competitiveness and ensure that South Africans will continue to benefit from our world class airline service. The new 737-800’s will further enhance our high efficiency, low cost business model.”