Absa Corporate and Investment Banking (CIB) has completed a structured aviation asset financing transaction worth approximately 1.26 billion rand (US$72 million) with Aircraft Engine Lease Finance Inc. (AELF), a US-based aircraft and engine leasing company.
The deal, announced by both parties on Tuesday, positions Absa CIB as the mandated lead arranger and lead bank, reinforcing the South African lender’s growing footprint in specialised asset-backed financing across global aviation markets.
According to the announcement, the financing will support AELF’s fleet expansion and diversification strategy, with a particular focus on Africa and other emerging markets, where demand for aircraft engines and leasing solutions continues to rise amid post-pandemic recovery and capacity constraints.
AELF specialises in the acquisition, leasing and management of commercial aircraft engines, a segment of the aviation industry that has attracted increasing investor interest due to its relatively stable returns and critical role in airline operations. Engines are often leased independently of aircraft, providing flexibility for airlines managing maintenance cycles and fleet transitions.
For Absa, the transaction highlights its expertise in structured asset finance, particularly in capital-intensive sectors such as aviation, infrastructure and energy. The bank has increasingly positioned itself as a go-to financier for complex cross-border deals involving hard assets, especially those linked to growth markets.
The deal also reflects a broader trend of African and emerging-market-focused financing being arranged from the continent, rather than exclusively through European or North American banks. As global lessors look to expand into underserved aviation markets, access to flexible and locally informed financing structures has become more critical.
Absa said the transaction aligns with its strategy of supporting clients operating in high-growth sectors while deepening its role in facilitating trade, investment and asset development across Africa and beyond.
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