ISE investors to trade aviation debts

The Irish Stock Exchange has launched a platform to help aviation companies raise money by trading debt instruments.

The exchange is home to 26 aviation debt listings, including International Airlines Group (the parent of BA and Iberia), Emirates Airline, and Avolon, with a total value of $12.7bn (€9.3bn).

The exchange will allow investors to trade aviation-related debts and other instruments on a new niche market. It wants to create an international hub for aviation finance assets based on the specialist knowledge of the industry in Irish-based leasing, broking, and corporate finance firms.

Deirdre Somers, the chief executive of the Irish Stock Exchange, said the skills are already present and all they are doing is matching them.

“Ireland is a world leader in aviation finance and the Irish Stock Exchange is a world leader in debt listings. We want to combine these skills to make Ireland even more attractive for aviation issuers and investors,” Ms Somers said.

“We are creating a dedicated platform specialising in aviation-related debt instruments that will provide issuers and investors with what they are looking for — visibility and specialist knowledge of their sector.”

The move is as a result of collaboration by stockbroking firms and aircraft-leasing companies who worked with Enterprise Ireland’s Aviation Forum to develop the platform.

Kostya Zolotusky of Boeing Capital said traded instruments will be used to provide 20% of the world’s delivery financing in 2014.

“Ireland’s unique position at the epicentre of global aircraft leasing is well recognised,” he said.

Joe Gill, the chairman of Enterprise Ireland’s Aviation Forum and a director of corporate broking with Goodbody Stockbrokers, said the market is growing globally and Ireland has an opportunity to capitalise.

“With over $110bn of aircraft assets being delivered annually worldwide, the need for innovative funding by capital markets will only grow in line with an expanding aircraft leasing sector,” he said.

“Ireland can provide a valuable platform to connect retail and institutional investors with key aviation companies in this key financial services sector and Goodbody is committing resources in support of that ambition.”