Oasis Leasing secures USD 10m investment

The Abu Dhabi-based lessor said the cash injection was in the form of a loan convertible into shares as and when its planned rights issue takes place.

"This is a significant vote of confidence in Oasis Leasing by our largest share holder. It will provide new money which can be used to capitalise on the opportunities in the leasing market for the benefit of both the company and its shareholders," said Mohammed Saif Al-Mazrouei, Chairman, Oasis Leasing.

The deal was signed in Abu Dhabi by Al-Mazrouei and by John MacBeath, Managing Director, Industrial and Business Development, BAE Systems.

"As a founder shareholder of Oasis Leasing, BAE Systems now underlines its long-standing commitment to Oasis Leasing and to the development of the United Arab Emirates' financial services sector," said MacBeath.

"Since its foundation in 1997, Oasis Leasing has been and continues to be a successful company. BAE Systems believes the cyclical nature of leasing means there will be many opportunities for Oasis Leasing to grow and diversify its asset base and to continue to generate attractive shareholder returns."

Ben Bridge, BAE Systems Director - United Arab Emirates, added: "BAE Systems has had a presence in Abu Dhabi for many years and we look to build upon our work in the Emirate, in a number of different sectors, for mutual benefit in the future."

At the end of 2003 Oasis Leasing's asset portfolio included 21 aircraft on lease to major regional and international flag carriers and a 50% stake in a capsize dry-bulk vessel.

The company aims to build its asset and risk profile from its current US $560 million value to US $1.2 billion by 2006, with additional investments in aircraft and targeted moves into shipping, infrastructure and power plant financing.

"This additional investment by BAE Systems is great news for Oasis Leasing," said Gordon Dixon, CEO, Oasis Leasing. "It will enable us to take advantage of the business opportunities that are beginning to emerge as the aircraft leasing industry continues to recover and the world's major airlines reorganise and put in place new financing strategies. It is a meaningful endorsement of the company's strategy now and going forward."

Dixon added that no firm decision had been taken on when to increase the company's share capital through the rights issue. "We will launch the rights issue when the time is right for the market and for our shareholders. In the meantime, this important commitment from BAE Systems proves the availability of alternative financing instruments which can be utilised to maintain the company's growth profile."