SGRF, OBIC set up RO200mn aviation leasing company

The sultanate’s State General Reserve Fund (SGRF) and the Oman Brunei Investment Co (OBIC) have announced an alliance to set up a joint venture aviation leasing company -Oman Brunei Aviation Leasing Co (OBALC) – with an authorised capital of RO200mn.

OBIC owns a 60 per cent stake in the new company and SGRF 30 per cent, while the remaining ten per cent will be owned by other investors.

The newly formed JV company will invest in and manage the purchase and lease of modern and fuel-efficient commercial aircrafts operated by airlines in the Middle East and globally, a press release issued by SGRF said on Monday.

Commenting on the strategic partnership, H E Abdulsalam al Murshidi, executive president of SGRF and chairman of OBIC, said, “As chairman of OBIC, I am very proud of this promising investment as it represents a stepping stone towards the continued efforts to diversify Oman’s economy.” “SGRF has always strived to support such initiatives presented from joint venture companies,” he added.

About the new joint venture with SGRF, Abeer Mohammed al Abduwani, CEO of OBIC, said, “After we came up with the business plan for an aviation leasing company, we looked for a strong founding and strategic business partnership and accomplished both with SGRF.” “Aircraft leasing represents an attractive investment product and in due course we will be offering institutional investors the opportunity to participate in the sector through an aviation leasing fund,” she added.

Earlier, OBIC said on its website that it has acquired one new Boeing 737–900ER aircraft and placed it on lease to Oman Air. The transaction represents a major development for OBIC in the aviation finance and aircraft leasing sector, the company added.

OBIC is a private equity company jointly capitalised by SGRF of Oman (50 per cent) and the Brunei Investment Agency (50 per cent). The company has been created to promote financial and economic benefits to Oman, GCC and Brunei. The company undertakes investments in aviation finance, infrastructure, transportation, education, food, healthcare, manufacturing and oil and gas by targeting attractive private equity investments in medium sized-businesses that offer opportunities for growth and value creation.

OBIC’s focus is on acquiring strategic stakes in new projects and existing operating companies, through direct participation and joint venture investments which cater to building a diversified portfolio across the vital sectors of the economy and industries.

 

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