Former Ryanair finance chief and deputy chief executive Howard Millar is to lead a $5bn (€4.4bn) capital raise being undertaken by aircraft services group Stellwagen.
Mr Millar has been appointed chief operating officer of the Stellwagen Group and chief executive of the newly-established Stellwagen Capital; which will act as the group’s chief aircraft financing arm and stand alongside Dublin-based subsidiaries, aircraft management firm Seraph Aviation Management and loan broker Aviation Finance Company.
Stellwagen Capital is aiming to raise $5bn in the next three years and is set to position itself as the leading source of finance for airlines looking to buy aircraft, taking on traditional leasing firms in the process.
An initial $1bn will be raised later this year through the issuance of a 10-year loan note product via the Irish Stock Exchange.
That is aimed at US and Middle Eastern investment funds, while another $2bn will be raised mainly via European pension funds next year and the same amount in 2018.
Mr Millar said Stellwagen can provide secured financing to airlines as traditional banks retreat from the market.
He said that returns on investment of up to 8% will attract big investment funds to the capital raise.
Commenting on Mr Millar’s appointment, Stellwagen Group CEO Douglas Brennan said he brings “game-changing ability to the group, with 23 years’ experience in aviation, including raising capital in the public and debt markets, using a range of financial products, while propelling Ryanair to become the largest and most profitable airline in Europe”.
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