Sanad & ADNL Partnership Expands To Spares Financing

Growing $320 million partnership to allow Sanad and NBAD-owned company to expand financing support to global airline customers

Sanad Aero Solutions GMBH (Sanad), Mubadala Aerospace’s integrated engines and components financing and leasing solutions company, is expanding its partnership with Abu Dhabi National Leasing (ADNL), the wholly owned lease finance arm of the National Bank of Abu Dhabi (NBAD) to enhance Sanad’s integrated spares financing activities in collaboration with ADAT and SR Technics, Mubadala Aerospace’ s Global MRO Network.

The partnership is now valued in excess of $320 million – and is expected to grow more in the near future.

ADNL and Sanad have been working together since late 2011 and the expanded partnership will further strengthen the synergies between Sanad’s asset management expertise and ADNL’s commercial banking and lease finance offerings.

The commercial airline industry holds an estimated $35 billion in spare engines and rotable components today supporting existing fleets. Sanad estimates that the industry will require an additional $20 billion in new spares to support new aircraft deliveries forecast over the next 20 years. The Global Spares partnership will ensure Sanad and ADNL are well positioned to serve this need with a range of products.

Troy Lambeth, CEO of Sanad, said: “We are thrilled to see our relationship with ADNL expand through this important partnership. This sets a strong foundation for growth for both companies as we continue to expand globally and further our shared mandate to establish Abu Dhabi as a global aerospace hub.”

Financing through this partnership now exceeds $320 million including $169 million of lease financing in Sanad’s sale-and-leaseback of spare engines with Etihad Airways in December 2011, and a further $155 million in lease financing in December 2012, supporting a number of Sanad transactions in Europe, the MENA region and Asia.

Yousef Abdulla Yousef, the Managing Director of ADNL, said:
“Our growing partnership with Sanad is evidence of our confidence in both the economic potential of the aerospace industry for the UAE, and Sanad’s important role in taking advantage of this exciting and growing market opportunity. We look forward to working with Sanad and its investors to support more global airlines and contribute to Abu Dhabi’s economic vision.”

“The strong collaboration between ADNL and Sanad has witnessed three transactions closing in a short period of time. It is an ideal blend of financial capabilities and strong technical skills and expertise for a complex MRO business,” Yousef Abdulla Yousef added.

Since its launch in 2010, Sanad has grown its portfolio to over $550 million in assets under management supporting a growing number of industry leading airlines including Etihad Airways, Virgin Australia, Finnair, Air Berlin and others.

ADNL provides a variety of lease and lease-finance facilities to large UAE, GCC and international corporate entities operating within the UAE. 

Emirate:  Abu Dhabi

Date: Feb 5, 2013

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