TAF to finance two Emirates A380s under debut deal

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Tamweel Aviation Finance (TAF) and Emirates have closed a finance lease transaction covering two Airbus A380s.

The deal is the first to be struck by TAF, a joint venture between Novus Aviation Capital, Airbus and Development Bank of Japan.

Launched in September 2013, TAF is described by Dubai-based Novus as a "managed financing platform offering turnkey alternative financing solutions to airlines and aircraft leasing companies".

Novus, which already has Boeing 777s on operating leases with Emirates, acted as overall structural agent for the A380 deal, and provided a mezzanine tranche through TAF. Senior financing was provided by a consortium of regional and international banks, including Korea Development Bank, the National Bank of Abu Dhabi, Saudi bank Samba and Abu Dhabi-based Union National Bank.

Mounir Kuzbari, an executive vice-president at Novus and member of TAF's investment committee, deems the transaction "a validation of the demand for alternative non-bank financing sources", adding: "We are very encouraged by the participation of distinguished GCC [Gulf Co-operation Council] lending institutions alongside a major Asian development bank."