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Bahrain-based investment bank, United International Bank (UIB) and Novus Aviation have signed a letter of intent with the Royal Bank of Scotland (RBS) for investment in five aircraft through Falak Investments Limited (Falak).
UIB has an authorised capital of $2.5 billion and a paid up capital of $291 million. Established in the second half of 2006, UIB's principal line of business is to provide Shariah compliant private equity and asset based investments to its investors in the GCC. UIB's shareholders include leading corporate investors and high net-worth individuals from the GCC.
Falak, a joint venture between UIB and Novus Aviation, was set up to invest in a diversified portfolio of aircraft leased to major airlines.
Geneva-based, Novus Aviation has more than 30 years of global experience in the aviation industry, covering different segments of the commercial jet aircraft business including trading, leasing, financing, management and re-marketing.
Established earlier last year by UIB and Novus Aviation, the Falak portfolio currently comprises of six aircraft on lease to leading airlines in the GCC and Europe. With the acquisition of an additional five aircraft, the portfolio will have a total value of approximately $400 million. Leased to major airlines in Europe, India and Asia, the additional five aircraft comprise of A320 family aircraft, B737NG, B747-400, and Embraer ERJ-145.
UIB board of directors chairman Asaad Albanwan noted: "Our recent investment in five aircraft is in line with UIB's strategy to provide its investors with Shariah compliant investment opportunities with strong underlying assets and attractive returns. Aviation leasing offers a stable income with the potential for significant growth and has already generated a lot of interest from investors."
UIB general manager and acting chief executive officer Abdulla Janahi said: "Expanding Falak's portfolio through this investment will provide investors with an even more robust investment opportunity. Our partnership with Novus Aviation will strengthen UIB's aircraft investment portfolio and support the bank's initiative to enter new territories."
