The Canada Pension Plan Investment Board (CPPIB) will provide at least US$266 million to help fund expansion at AWAS, a Dublin-based aircraft leasing firm.
CPPIB already owns 16% of AWAS and the investment will increase its stake to 25%. The CPPIB says the aircraft leasing firm’s plan to grow comes at an opportune time.
“CPPIB’s latest investment in AWAS demonstrates our long-term approach to investing in businesses throughout economic cycles,” said Andre Bourbonnais, senior vice-president for private investments at CPPIB.
“We are delighted to help fund AWAS’ acquisition strategy at what we feel is an attractive point in the aviation cycle to invest.”
The pension fund manager’s stake could increase beyond 25 per cent because it has committed a further US$200 million that AWAS could draw on at a later date.
The CPPIB invests surplus money from employer and employee contributions that aren’t required to pay current retirement benefits.
It’s latest investment in AWAS is part of US$529 million that is being provided by a group of investors to fund the aircraft leasing company’s expansion plans.
Private equity firm Terra Firma is providing US$246 million and will hold a 60 per cent stake in the company and other investors will provide another US$17 million and take a 15 per cent stake in the company.
AWAS has a fleet of over 200 commercial aircraft on lease to more than 90 customers in approximately 45 countries.