Fresh funds flow in to fuel TrueNoord’s growth strategy

Regional aircraft lessor TrueNoord has secured fresh investment from existing and new investors that brings its total available equity up to nearly US$400 million to further expand its portfolio.

The money will also be used to partially refinance its existing fleet as the company continues its growth plan. The latest investment is in addition to a senior secured debt facility of $500 million announced in July.

TrueNoord is aiming to substantially grow its existing fleet of 30 Embraer, Bombardier and ATR aircraft within the next five years, building on its strong presence in Europe through further expansion in Asia, Africa and the Americas. The lessor focuses on regional aircraft in the 50–150 seat class sector, providing lease and lease management services to operators and investors.

The new equity was raised from original investors Bregal Freshstream, BlackRock and Aberdeen Standard, along with further investment from a number of new sources including Capital Dynamics, Euro Private Equity and Flandrin, among others. The $500m secured debt facility was arranged and fully underwritten by Morgan Stanley, NORD/LB Norddeutsche Landesbank and Barclays.

CEO Anne-Bart Tieleman commented: “For TrueNoord, this is the next important step in our business development and allows us to be more proactive in pursuing regional aircraft leasing transactions as we seek to build on the strong momentum we have generated in recent years to become one of the mainstream players in this sector.”

Approximately 50% of all passenger travel is accounted for by journeys under 300 nautical miles, according to TrueNoord, especially in Southeast Asia and Latin America. The lessor focuses on the acquisition of relatively young aircraft with leases attached to stable and well-positioned airlines.

Bregal Freshstream chief investment officer, Rayhan Davis, added: “Since our original investment in the business, TrueNoord has gone from strength to strength, delivering on the group’s expansion plans in the regional aircraft sector. The business is fully committed to expanding its fleet of Embraer, Bombardier and ATR aircraft not only in Europe but also in Asia, Africa, North America and Latin America.”

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