Castlelake to finance $560 mln for Vietjet’s 4 Airbus aircraft

U.S.-based Castlelake, a global alternative investment manager with extensive experience in aircraft investing, leasing and servicing, has agreed to finance four aircraft valued at $560 million to be acquired by Vietnamese budget carrier Vietjet.

The two sides exchanged a memorandum of understanding (MoU) on the financing in the presence of Vietnam’s Party General Secretary and State President To Lam at the Vietnam-Ireland Business Forum in Dublin on Thursday.

Under the MoU, Castlelake intends to provide financing for four new Airbus A321neo aircraft under Vietjet’s existing order with Airbus. These aircraft will be delivered by the end of this year, the airline said in an announcement on Thursday.

The anticipated transaction follows a financing agreement that was completed in 2023 for three Airbus A321neo aircraft, it added.

Chris Buckley, partner and aviation chief commercial officer at Castlelake, said the firm looked forward to pursuing this transaction and exploring more opportunities to grow the business with Vietjet in the future.

Vietjet chief executive officer Dinh Viet Phuong stated that the agreement aligns with Vietjet's strategy to expand its fleet and global flight network. Vietjet currently operates a fleet of over 100 aircraft, including the A320, A321ceo, A321neo - A321neo ACF, and A330.

The airline is committed to environmental protection and fuel efficiency, with a goal of achieving net-zero emissions by 2050, it stated.

With the new aircraft, Vietjet will further expand its network both in Vietnam and internationally, adding new destinations in Australia, India, China, Japan, South Korea, Indonesia, Thailand, Singapore, Malaysia, Laos, Cambodia, and beyond.

Founded in 2005, Castlelake has invested directly or indirectly in more than 650 aircraft of various types and has developed relationships with approximately 200 airlines spanning more than 60 countries around the globe.

It had approximately $22 billion in assets under management as of March 31, 2024 and focused on investments in real assets, specialty finance and aviation.

Last month, Castlelake announced commitments of over $1 billion for a new aviation financing term loan facility, designed to support its ongoing investments in and acquisitions of high-demand aviation assets. It is in various stages of acquiring more than 60 aircraft assets from leasing companies, airlines and other aircraft owners using financing from the facility.