NH Investment & Securities Co. Ltd. has underwritten $70 million mezzanine debts of around $300 million financing to buy two aircraft operated by Qatar Airways Co.
The South Korean brokerage firm acquired the debt through a nine-year fund of Hyundai Asset Management Co. Ltd. for an expected annual return of slightly over 5%, according to a source with knowledge of the matter on May 31.
The domestic fund closed last week to finance the purchase of two Boeing 777-300ER aircraft and lease them back to Qatar Airways.
NH Investment aims to resell its interest in the fund to domestic institutional investors.
A string of South Korean brokerage firms have recently participated in aviation financing for the Boeing 777-300ER model which is highly sought after in the used aircraft market.
Their investment is concentrated mostly in mezzanine notes for top-tier, or state-owned airlines such as Qatar Airways.
By Daehun Kim
<Edited by Yeonhee Kim>