Floreat Group Issues ABS and Lists on the Luxembourg Stock Exchange

LONDON, January 31, 2017 /PRNewswire/ --

Floreat Group has listed its first asset-backed security on the EURO MTF market of the Luxembourg Stock Exchange with an issuance size of up to USD 175m.

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The first tranche issued in December and pays a fixed coupon of 7% per annum for 10 years. Two independent liquidity providers have been appointed to provide daily pricing. The coupon is generated by indirect exposure to a portfolio of A330 aircraft on lease to Asiana Airlines, Hawaiian Airlines and Virgin Australia. A fourth aircraft on lease to Tap Portugal will likely be acquired later in January 2017. With the acquisition of the fourth aircraft the total value of the portfolio will be around USD 320m and is funded with the proceeds of the notes and senior debt provided by Nord LB.

"We are very encouraged by the interest we received from our institutional client base," said Mutaz Otaibi, Floreat Group Managing Partner. "This issuance is a first in a program our capital markets team will lead in 2017 and beyond."

Over half the subscriptions came through the Sharia compliant series which was structured to accommodate investor interest from the Middle East and Asia.

"The issuance caters for the needs of our private and institutional clients, and we are pleased to have been able to successfully build upon our team's track record in both securitisation and asset-based investing to create an innovative income-generating product," said Zaki Nuseibeh, a partner at Floreat Capital Markets Ltd.

Floreat Group seeded the notes and placed the remainder via their sales team within Floreat Merchant Banking Ltd. Floreat Capital Markets Ltd. were responsible for origination and structuring.

Doric are responsible for the ongoing asset management of the portfolio, Deutsche Bank AG London acted as the Primary Settlement Agent and have been appointed as Paying Agent, and Allen & Overy advised on the transaction.

The Floreat Group is a privately-held independent financial group based in London.