Aircraft financing JV from Bravia Capital and IL&FS

BY A CORRESPONDENT
May 10, 2006

To meet the financial needs of the Indian aircraft industry, Bravia Capital and Infrastructure Leasing and Financial Services (IL&FS) has set up a joint venture firm.

The joint venture will also invest money to acquire commercial aircrafts, which will hen be leased or financed for the Indian air carriers. This is considered to be the first such move which specifically targets the booming Indian aviation market.

The Indian airlines are looking for initial payments for placing the orders to buy new aircrafts. “Newly formed airlines with well-defined business plans, as well as India’s legacy carriers, will benefit from the venture,” Bravia said in a statement.

According to the JV, the two companies will work together to source and market appropriate aircraft, make traditional and new short-term structures, arrange debt financing while investing their own equity risk capital.
As per the joint venture, Bravia Capital will give technical support for each aircraft transaction. This will also include cargo conversion and maintenance management facilities.

Bharat Bhise, chief executive, Bravia Capital Partners said, “Few markets in the world are as vibrant as the India’s.”
The joint venture will also help to arrange source and participate in syndication of senior debt, mezzanine debt and equity financing. The companies will market the venture to airline operators and other aviation projects. It will also set up local financial structures to support transactions.