Aeroplane

Aircraft asset-backed peer-lending platform ablrate.com takes off

Ablrate.com, the world’s first platform for retail and small institutional investors to invest in aircraft transactions, has launched allowing investors to invest directly in aircraft assets.

Ablrate.com will also offer direct investment opportunities in capital equipment transactions. The first aircraft deal will go live on 14 July.
 
The ablrate.com platform will feature aircraft deals for ATR aircraft in particular, one of the best performing turboprop aeroplanes on the market. ATRs were chosen because they are in strong demand on the used market, they are tried and tested with over 25 million miles flown by this aircraft type, and ATR has built a strong support and maintenance infrastructure for its customers.
 
ATRs along with other regional aircraft account globally for 30 per cent of passenger miles travelled, equating to over 900 million passengers.
 
Ablrate.com is designed to offer lenders access to high-quality asset backed loans. The platform offers two types of transactions for investors; auction and fixed rate loans. Borrowers will be either respected leasing companies or lessees themselves. In the event of a lessee going directly onto the platform, the aircraft asset will be managed by Phoenix Aircraft Leasing. For capital equipment, assets will be managed by DS Finance and Leasing headed by the former managing director of GE Capital Europe.
 
Ablrate.com already has a deal pipeline worth up to GBP50 million for investors to gain access to. The first deal that will go live on the platform will finance an ATR-42 turboprop leased to a government airline with an indicative interest rate of 10 per cent per annum for investors.
 
All transactions on the platform are given ratings to inform lenders of the quality of the deal and lenders can view all deal information to allow them to make an informed decision before investing. The ablrate.com platform also includes a secondary market for lending members to trade existing loan agreements.
 
David Bradley-Ward, co-founder and director, ablrate.com, says: “Aircraft are an evocative asset as well as a lucrative one, and with the advent of peer lending, we are able to offer everyday investors, asset managers and institutions unique access to this asset class. Thanks to the partnerships we’ve built up with leasing firms like Phoenix and DS Finance and Leasing, we’ve been able to secure a high quality and well stocked deal pipeline, covering both aircraft and capital equipment. Rather than seeking to cover a broad range of assets and investment types, we’ve taken the decision to focus on our core areas of knowledge, and deliver excellent deals to our investor community.” 

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