The Canada Pension Plan Investment Board has pledged to spend $266 million to help fund expansion at Dublin-based aircraft leasing firm AWAS.
AWAS has a fleet of over 200 commercial aircraft on lease to more than 90 customers in approximately 45 countries. It employs roughly 120 people worldwide, and has 110 aircraft on order from Airbus and Boeing.
CPPIB's investment adds to the $347 million US that CPPIB has already directly invested in the company.
The investment is part of $529 million US in total that AWAS secured to fund its expansion plans Thursday. The other major partner is Terra Firma — which pledged an additional $246 million US — but other investors are also putting up $17 million US.
CPPIB already owns 16 per cent of AWAS and the investment will increase its stake to 25 per cent. Terra's stake will increase to 60 per cent, and other investors will own the remaining 15 per cent. CPP's stake could increase beyond 25 per cent because it has committed a further $200 million US that AWAS could draw on at a later date.
The aircraft leasing firm's plan to grow comes at an opportune time, CPPIB management said in a release.
"We are delighted to help fund AWAS' acquisition strategy at what we feel is an attractive point in the aviation cycle to invest," said Andre Bourbonnais, senior vice-president for private investments at CPPIB.
"We see this as another affirmation of the value of our proven platform, growth strategy," AWAS president Ray Sisson said of the deal.
The CPPIB invests surplus money from employer and employee contributions that aren't required to pay current retirement benefits. It had $140.1 billion in assets at the end of December.