B&B to list aircraft leasing fund on Wall Street

Increasing demand for jets from discount low-cost airlines around the world has prompted the investment group Babcock & Brown to float its aircraft leasing operation on the New York Stock Exchange in a deal that will value the fund at $US773 million ($920 million).
B&B will use the proceeds from the sale of 18.69 million American Depositary Shares to help fund the part-purchase of 47 narrow-bodied jets, mainly Boeing 737s, 757s and Airbus 320s and 319s, by the newly listed Babcock & Brown Air Ltd, from various group businesses.
B&B sought to downplay the American exposure of the new fund, emphasising in the listing details lodged with the Securities and Exchange Commission in Washington that the 47 aircraft were leased to 29 different airlines in 16 countries.
Just over half of the aircraft are operated by companies in China, India, Mexico and Russia, where demand for air travel is growing rapidly, fuelled by the launch of no-frills and cheap ticket airlines. Just 14 per cent of the aircraft are leased by US airlines.
14/09/07 Danny John/Sydney Morning Herald, Australia

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Categories: Foreign Sep 2007