Michael J. Darch

Its annual general meeting recently agreed to a rights issue to finance the expansion of the company's assets from $472 million today to $1.5 billion over the next three years. Oasis Leasing's business is Big Ticket leasing, a way of financing the ownership of large assets such as aircraft, shipping, IT infrastructure, power stations and pipelines.

'Leasing means that the leasing company owns 100% of the asset, and that 100% of the asset cost can be financed,' says Michael J Darch, finance director of Oasis Leasing. 'That means that the asset is on our balance sheet. It's a particular kind of financial engineering that benefits some companies.

'Around the world Big Ticket leasing has grown enormously over the past 30 years from a $30 billion to $500 billion industry. But we are the only company in the Middle East offering this kind of finance, although we do finance assets all over the world'.

Oasis Leasing's current asset portfolio includes 12 aircraft on long term leases to airlines, and a 50% stake in a 172,000 tonne bulk carrier ship acquired last year. Where will it turn to for business next?

'We need to spread our risk both geographically to different countries, and to different asset types and customers,' says Mr Darch, a British chartered accountant who started Oasis in 1998, and was previously the finance director of BAe's aircraft leasing company. BAe Systems was a founder shareholder in Oasis, along with the Abu Dhabi Investment Authority, Gulf Investment Corporation and insurance and investment companies. There are over 36,000 individual shareholders.

'After September 11, there has been a move by airlines to lease back their aircraft to acquire cash,' says Mr. Darch. 'And more firms are looking to do leasing as a way to acquire assets, and manage them rather than own them. It depends on what your financial requirements are and your marginal average cost of capital'.

Oasis Leasing plans to launch a bond issue next year, although no firm decisions have been made on how, where and when.

'Pension fund and insurance companies here are looking for new homes for their money,' explains Mr. Darch. 'Bonds are very popular because they offer a regular income from a collection of assets'.

But Mr. Darch says that he is never sentimental in business, and if a company leasing an asset defaults on a payment then Oasis will reclaim the asset and lease it to somebody else. Also, to some extent this is a niche business.

'We don't compete with the big leasing companies but try for the smaller deals where we have less competition,' he says. 'People can find us on our website www.oasisleasing.com, and we are here in Abu Dhabi if anyone wants to see us.'

Mr. Darch is also closely following the development of the Dubai International Financial Centre and, although he can see no immediate advantage in relocating there, he is excited by the potential clients it may attract for Oasis Leasing. 'These are the sort of people I would like to be doing business with,' he says

For Oasis Leasing these are exciting times, and this is a company that will grow strongly as the financing of assets moves to international best practice across the Middle East, as well as picking up on a financing option that is increasingly popular around the globe.