MANAMA: Capital Management House (CMH), the Bahrain based investment bank, made the first distribution of dividends to investors of its aircraft leasing investment fund which was established in partnership with Novus Aviation and Muzun Partner Ltd. Early investors in the fund have received the first payment calculated at 10 percent per annum for the period ending 31 March 2011. Subsequent distributions will be made on a quarterly basis. Investors in the fund include a number of high-net worth individuals, family offices and institutions from across the GCC region. The fund has been structured around a transaction with Emirates Airlines, one of the world's leading airlines, consisting of the acquisition of a Boeing 777-200ER aircraft from the airline and an agreement whereby it will be leased back to Emirates for a six-year period. The fund is now being offered to additional investors across the region, providing them with a unique opportunity to benefit from positive trends in the global aviation industry, which has shown consistent long-term growth despite the various challenges in the financial markets, and in particular the opportunities in the Middle East region, which represents one of the fastest growing travel hubs in the world today. Khalid M. Najibi, managing director of CMH, said: "We are delighted to announce the payment of dividends, both underscoring the opportunities that exist in the aviation sector and leasing sub-segment as well as the ability of CMH and our partners to effectively manage and leverage our investments. The fund and our existing investment in the Boeing 777-200ER airliner acquired and leased back to Emirates has affirmed our strategy that acquiring income yielding assets not only provides the Bank and our investors with strong potential for capital appreciation over time but, importantly, ensures a recurring and sustained stream of income and the ability for us to deliver to our investors strong returns right from the outset. In today's climate investors are seeking income-yielding products with limited downside risk. Our aviation fund delivers this. Working with our partner Novus Aviation, a market leader in the aviation leasing industry, we are confident that we will continue to identify and execute additional opportunities that will similarly help to generate strong and steady cash flows as well as significant longer-term upside potential." Aviation has shown to be a resilient sector and leasing a lucrative sub-segment within it. In recent years, the operating leasing segment has grown significantly with expectations for further growth both in absolute and relative terms expected to continue.
