Aergo Capital refinancing deal may power €1bn in plane purchases

Irish aircraft lessor has refinanced debt on 26 craft leased to 12 clients

Irish aircraft lessor Aergo Capital could have more than $1 billion to spend on buying new planes next year following a recent refinancing, according to its chief executive, Fred Browne.

Aergo has just refinanced the debt on 26 craft leased to 12 clients by issuing $605 million in bonds secured on the planes themselves in a transaction known as an asset-backed securitisation.

The move gives Aergo cash against which it can leverage to borrow further funds for the purchase of new craft.

Mr Browne said that, as a result, it should have more than $1 billion to spend on this next year. “It gives us a significant amount of capital,” he pointed out.


Aergo, backed by private equity player, Carval, typically uses a mix of its own cash and debt to buy the craft it leases to airlines.

‘Very competitive environment’

Its chief executive acknowledged that a combination of growing demand from China for aircraft and the availability of cheap money on the market, created a “very competitive environment”. However, he added that there were still good opportunities.

Mr Browne, who has a small stake in the business, said that its focus remains on narrow-body jets such as the Airbus A320s and Boeing 737s, the aviation industry's so-called "workhorses", used mainly for short-haul travel. The company does have a handful of A330s, larger craft used for long haul.

Aergo has a mix of airline clients in the Americas, Europe, Africa and Asia. It has leased craft to Ethiopian Airlines, South African Airways, India's Jet Airways and Indonesia's Lion Air

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas