Aussie super fund supports US$2.2bn Macquarie AirFinance acquisition

Oksana Patron

12 January 2023

Queensland-based superannuation fund, the Australian Retirement Trust (ART), together with Macquarie Asset Management and PGGM Infrastructure Fund, have supported US$2.2 billion Macquarie AirFinance acquisition of an aircraft portfolio from ALAFCO Aviation Lease and Finance Company K.S.C.P.

Under the terms of a deal, the Macquarie AirFinance’s shareholders would contribute up to US$600 million of new equity to the business, enabling it the purchase of 53 current and next-generation commercial passenger aircraft and an order for 20 Boeing 737 MAX aircraft from ALAFCO.

Michael Weaver, head of global real assets at ART, said the diversification of Macquarie AirFinance’s fleet into more efficient and lower emissions aircraft was consistent with ART’s broader strategies to lower net emissions across its portfolio, without compromising on its members’ best financial interests.

Macquarie AirFinance, which is a provider of aircraft leasing and financing solutions, with a portfolio comprised of 189 aircraft leased to 77 airlines across 47 countries and an existing orderbook of 59 Airbus A320neo and A220-300 aircraft, said this transaction would enable the business to further expand and diversify its fleet of aircraft while improving the emissions profile, scale, average age, remaining lease term, and orderbook size of Macquarie AirFinance as the recovery of the aviation sector gained pace.

“Our partnership with Macquarie and PGGM in Macquarie AirFinance continues to provide ART’s members an attractive investment into a unique asset with diversification benefits across our portfolio,” Weaver added.

The transaction would be supported with a $US1.65 billion acquisition facility, underwritten by BNP Paribas, Citibank, MUFG Bank, and Natixis.