Marsh launches innovative aircraft financing product
Aircraft Finance Insurance Consortium is designed for banks and capital market investors funding aircraft purchases from Boeing.
Aircraft Finance Insurance Consortium is designed for banks and capital market investors funding aircraft purchases from Boeing.
Marsh today announced the launch of Aircraft Finance Insurance Consortium (AFIC), a unique non-payment insurance product designed for banks and capital market investors that are funding new aircraft purchases from Boeing.
AFIC can assist airlines globally in obtaining more efficient financing by utilising insurance to protect the lender’s exposure to default for the duration of the loan. The terms of this insurance can be tailored according to the individual purchase agreements made between Boeing, the airline, and its financiers.
Bruce Fine, global leader of AFIC for Marsh, said: “We believe that AFIC is a significant development in airline financing globally and will contribute to the growth and diversification of aircraft finance. AFIC offers Boeing customers a wider range of financing options to facilitate the purchase of newer, more efficient aircraft to enhance their fleets, and lenders will be able to conduct new transactions with greater confidence.”
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