FTAI Aviation Ltd. (FTAI) has announced that its Strategic Capital Initiative (SCI) has secured a US$2.5 billion asset-level debt financing commitment. This funding is led by global investment firm ATLAS SP Partners, a structured products business primarily owned by Apollo funds, in collaboration with Deutsche Bank AG, New York Branch. The financing is expected to enable SCI to deploy over US$4.0 billion in total capital towards on-lease Boeing 737NG and Airbus A320ceo aircraft, reinforcing FTAI's asset-light business model.
The financing marks a significant milestone for FTAI, positioning the SCI as one of the largest investors in mid-life, on-lease aircraft. All engines acquired under the SCI will be powered exclusively through engine and module exchanges provided by FTAI's maintenance, repair and exchange (MRE) business. This integrated approach aims to optimise operational efficiency and cost-effectiveness.
Joseph P. Adams, CEO and Chairman of FTAI, expressed his enthusiasm about the financing, stating that the support from SCI capital partners and lenders affirms the company's positive trajectory. He highlighted that the financing will empower the SCI to expand its footprint in the mid-life aircraft market.
John Zito, Co-President of Apollo Asset Management, also voiced his excitement about the collaboration. He emphasised that the financing would deliver attractive, risk-adjusted returns for ATLAS SP clients, while showcasing ATLAS SP's leadership in inaugural asset-level financings. The partnership with FTAI's SCI team is expected to strengthen both firms' market presence and innovation within the aviation sector.
The debt financing is a strategic move for FTAI, solidifying its position as a major player in the mid-life aircraft leasing market and bolstering its long-term growth prospects.
