ISE launches dedicated aviation finance exchange

Initiative will build on Ireland’s reputation as the leading global centre for aviation finance

Boeing is just one of the aviation companies to welcome the Irish Stock Exchange’s new dedicated aviation finance exchange.  Photographer: SeongJoon Cho/Bloomberg

Boeing is just one of the aviation companies to welcome the Irish Stock Exchange’s new dedicated aviation finance exchange. Photographer: SeongJoon Cho/Bloomberg

 

The Irish Stock Exchange (ISE) has announced plans to create a specialist debt listing platform to enhance Ireland’s status as a global centre in aviation finance. Thanks in part to the legacy of GPA, Ireland is already the world’s biggest centre for aircraft leasing, with more than half of aircraft leasing worldwide led by companies based here.

The exchange will offer a “highly efficient, low-cost platform delivering better visibility, greater investor reach and improved market intelligence” for aviation-related debt and other instruments.

The ISE is already home to 26 aviation debt listings with a total value of $12.7 billion. These include a $927m EETC, or specialist instrument to finance the purchase of aircraft, from International Airlines Group (the parent of BA and Iberia); bonds totalling in excess of $1 billion associated with Emirates Airlines; and a $636 million asset-backed security from Avolon, a commercial aircraft leasing company.

In addition to debt instruments with a total value of $12.7 billion, the ISE is also home to equity listings for Ryanair and Aer Lingus

ISE chief executive Deirdre Somers said that the exchange wants to combine its skills in aviation finance and debt listings “to make Ireland even more attractive for aviation issuers and investors”.

“We are creating a dedicated platform specialising in aviation-related debt instruments that will provide issuers and investors with what they are looking for - visibility and specialist knowledge of their sector.”

Kostya Zolotusky, managing director, capital markets development and leasing at Boeing Capital Corporation, the jet builder’s financing and leasing unit, said that it expects new structured financial instruments will be developed to meet the needs of leasing firms and others.

“We congratulate Ireland on recognizing that and we look forward to continued evolution and innovation in how aircraft-securities are packaged,” said Mr Zolotusky.