Guernsey In Aircraft Investment Company First
Thursday, January 13, 2011
Guernsey Finance – the promotional agency on behalf of Guernsey's financial
services industry – has noted the listing on the London Stock Exchange of
a new Guernsey company offering investment in an A380 aircraft operated by Emirates
The company’s investment objective is to provide investors with income
and capital returns through a partial investment in the asset.
Doric Nimrod Air One has been established by London-based financial advisers,
Nimrod Capital and Doric Asset Finance, a Frankfurt-based aircraft leasing group
that specializes in financing A380s.
Doric has arranged similar investment vehicles in Germany for some of the eight
other A380s it has financed for Emirates and Singapore Airlines, since the aircraft's launch in October 2007. However, these were unquoted private partnerships and
in an article on December 31, 2010, the Financial Times remarked that the new
company is thought to be the first to be listed on a regulated stock exchange,
such as the LSE.
The new Guernsey-incorporated entity is listed on the LSE’s Specialist
Fund Market (SFM) and also the Channel Islands Stock Exchange (CISX). It has
Herbert Smith in London and Mourant Ozannes in Guernsey as legal advisers and
is being administered in Guernsey by Anson Fund Managers Limited.
Peter Niven, the Chief Executive of Guernsey
“It is extremely pleasing to see that once again Guernsey is home to
another ‘first’ in the investment sector. The island’s infrastructure
and expertise means that we are increasingly recognised as the domicile of choice
for the structuring and administration of companies investing in the widest
range of asset classes. The listing of this niche vehicle on both the SFM and
CISX will only add to Guernsey’s reputation as a tried and tested route
for launching specialized investment companies.”
Shortly after its admission to the SFM and to the CISX, Doric Nimrod Air One
Limited used the proceeds of its placing in conjunction with capital from Australia’s
Westpac Bank to acquire the A380 aircraft valued at USD180m (GBP114m) and subsequently
leased the aircraft to Emirates for 12 years.
Doric Nimrod Air One aims to return 2.25 pence per GBP1 share per quarter to
investors, which the backers say will amount to compounded annualized yield
of about 9%. When the lease expires, the company will have the option to sell
the aircraft and pay investors out from its residual value.