Novus Aviation Capital, Development Bank of Japan, NORD/LB and Boeing have launched Cedar Aviation Finance (CAF), a new junior debt fund designed to provide airlines and lessors with higher loan-to-value financing for the acquisition of Boeing-manufactured aircraft.
Novus will manage the fund, providing junior and mezzanine loans to bridge the gap between equity and senior debt.
CAF comes off the back of similar platforms like Tamweel Aviation Financing (TAF), which was launched in 2013 by Novus, DBJ and Airbus. The first CAF transaction is expected to take place by the end of the third quarter this year, says Novus.
Operating globally out of five offices in Europe, Asia and the Middle East, Novus has an aircraft portfolio under management of around 50 aircraft worth nearly $4 billion.
Clifford Chance was the lead counsel on the deal.