Nimrod Capital and Doric Lease today listed Doric Nimrod Air Three, a new investment company with a market capitalisation of £220 million ($334.8 million), on the London Stock Exchange.
Doric Lease says in a statement the investment vehicle aims to pay a quarterly dividend equivalent to 8.25% per annum, based on the issue price of 100 pence per share, following the sale and leaseback of four Airbus A380s to Emirates Airline.
"In addition to the regular yield of 8.25%, once the lease has expired, the aircraft are likely to be sold and investors paid out from the residual value," says Doric.
Each aircraft will be leased each for a period of up to 12 years, says the lessor.
Under the terms of the lease, the airline is responsible for insurance and all other service, maintenance and repair costs, according to Doric.
Investors in DNA3 are mainly institutional asset managers, pension schemes, and private wealth managers, who are attracted by the "profitable business model of the lessee, Emirates, as well as by the Airbus A380, which benefits from a unique position as the world's biggest passenger aircraft and, at the same time, a highly efficient aircraft", says Doric.
Doric's first aircraft investment company, Doric Nimrod Air One (DNA1), listed in December 2010, and invested in one Airbus A380.
Doric Nimrod Air Two (DNA2), which listed in July 2011, owns seven Airbus A380s.
Doric says DNA1 shares are now trading at 122 pence compared with the launch price of 100 pence, while DNA2 shares are trading at 234 pence from an initial issue price of 200 pence.