Apollo Global Management has signed a Memorandum of Understanding (MoU) to provide USD1.5 billion in customer financing to Embraer. The investment fund said it would work with the manufacturer to offer "a comprehensive range of innovative and bespoke solutions across the spectrum of customer and delivery financing".
Apollo will provide funding via its aviation business, Apollo PK AirFinance, and its affiliate Merx Aviation Finance, adding that its first transaction under the new framework is a sale/lease-back deal with Canada's Porter Airlines (P3, Toronto Billy Bishop City Centre) covering six E195-E2s due for delivery in 2023. The Canadian carrier has fifty on order and expects deliveries to begin by the end of the year.
Apollo Global Management has extensively invested in airlines. In August 2022, it entered into a USD700 million debtor-in-possession (DIP) financing agreement with SAS Scandinavian Airlines (SK, Copenhagen Kastrup), which is undergoing Chapter 11 restructuring.
It also led the recent acquisition of Atlas Air Worldwide Holdings, and is the controlling shareholder of Sun Country Airlines (SY, Minneapolis St. Paul International). It also owns a stake in Grupo Aeroméxico acquired through a debt-to-equity swap in Chapter 11 proceedings. Apollo has also provided financing to Air France-KLM and LATAM Airlines Group.
Among the airlines in Apollo's investment portfolio, Aeroméxico (via Aerolitoral), Air France (via HOP! (France)), KLM Royal Dutch Airlines (via KLM cityhopper), and SAS (via SAS Link) are Embraer regional jet operators. The ch-aviation fleets ownership module shows that Merx Aviation Finance does not currently own any aircraft built by the Brazilian manufacturer.
