Absa Corporate and Investment Banking (Absa CIB) has closed a USD72 million (approximately ZAR1.26 billion) structured asset finance facility with Aircraft Engine Lease Finance Inc. (AELF), supporting the expansion of the lessor’s aircraft fleet across Africa and other growth markets.
The transaction builds on an existing banking relationship between Absa and AELF and forms part of AELF’s broader strategy to grow and diversify its portfolio. Absa CIB acted as Mandated Lead Arranger and Senior Lender on the deal.
AELF is headquartered in Chicago and operates as a commercial aircraft and engine leasing platform, with a focus on mid-life aircraft and engines. The company provides leasing and financing solutions designed to align with customer fleet planning needs.
Under the terms of the facility, AELF will be able to acquire an additional aircraft. This will increase the number of aircraft it has on lease with African carriers from four to five, strengthening its footprint in a market that continues to see rising demand for aviation capacity.
“This transaction reflects Absa CIB’s deep expertise in structuring complex aviation finance solutions and our commitment to supporting the growth of Africa’s aviation sector. By partnering with AELF, we are enabling greater connectivity, job creation and skills development across the regional aviation value chain, while delivering a solution that creates value for both our client and Absa.” said John Zama, Principal: Structured Asset Finance at Absa CIB.
The deployment of the additional aircraft is expected to generate wider economic benefits, particularly within South Africa’s aviation ecosystem. These include employment opportunities and skills development for pilots, engineers, maintenance teams and ground staff. Greater access to reliable aircraft is also expected to improve operational capacity for local airlines and support regional connectivity.
From AELF’s perspective, the transaction further strengthens its banking partnership with Absa.
“Absa has proven to be an exceptional partner. This transaction deepens an already strong banking relationship by providing a financing structure that supports our acquisition and growth strategy” said AJ Issenman, Director of Capital Markets at AELF. “We’re grateful to have a banking partner who understands the intricacies of the commercial aircraft leasing market and we look forward to continued collaboration as we scale our operations.”
Absa’s relationship with AELF began in 2024 and has progressed through several transactions during 2025. Both parties have pointed to a shared focus on long-term collaboration and sustainable growth.
As a pan-African lender, Absa said its involvement in the facility reflects its role in supporting infrastructure development and enabling inclusive economic activity. The bank added that aviation remains a critical sector for trade, mobility and economic integration across the continent.
Through this transaction, Absa CIB continues to provide financing solutions within a complex and highly regulated industry, supporting clients whose expansion plans are contributing to the evolution of African aviation.
