FGB collaborates with ADGM to successfully place the first leasing SPVs into the ADGM franchise
FGB, one of the leading banks in the UAE, has successfully concluded one of Abu Dhabi’s first Special Purpose Vehicle (SPV) aircraft financing deals, in collaboration with Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi. The financing deals were part of ADGM’s innovative SPV regime, and were arranged to refinance two Etihad A380 aircraft bridge financings which were maturing in December 2016 and originally financed by FGB.
Natixis Leasing secured the bid for both aircrafts, one of which was subsequently part-financed by FGB under a USD 302 million lease finance structure. Acting as Advisor and Facilitator, FGB played an instrumental role in introducing the Natixis team to ADGM and is continuing to work with the financial centre to welcome further SPVs into the ADGM stable.
Steve Perry, Global Head of Debt Markets and Syndications at FGB, said: “The successful conclusion of these first two aviation financing related SPVs under ADGM marked the culmination of over 12 months of hard work and collaboration between FGB and ADGM. Since our initial meeting in November 2015, our teams met frequently throughout the following months, honing the structure of the offering to provide a bankable solution that would meet global standards, and a competitive fee structure. FGB is very proud of the role we have played in the successful conclusion of these transactions and we’re looking forward to continuing to support ADGM in both its future growth, as well as meeting the needs of the business community.”
Dhaher bin Dhaher, CEO, Registration Authority of ADGM, said: “FGB has been an instrumental partner of our efforts on the SPV front. As an industry leader, FGB was able to identify the advantage of the ADGM SPV regime to the marketplace on the early onset. To date, ADGM has successfully registered more than 50 SPVs serving across diverse sectors and industries. We are pleased to provide local, regional firms and family businesses with tailored and strategic tools to effectively address their business needs and domicile assets and investments via ADGM SPV regime without going to overseas jurisdictions. We will continue to work closely with strong partners like FGB to support their clients in Abu Dhabi and globally.”
ADGM launched its SPV regime officially to the industry in January 2017. Designed to address the needs of the business community, ADGM SPV regime caters to a broad range of uses in various industry sectors including but not limited to corporates, financial institutions, sovereign wealth funds, family offices and individual investors. The SPVs have been deployed as a strategic tool for a variety of purposes including efficient corporate and financial structuring, risk management and ring-fencing of assets and liabilities.