Investec says gets $500 mln for aircraft fund


South African bank and asset manager Investec said it has attracted US$500 million for a fund to invest in new generation fuel-efficient aircraft that are leased by airlines around the world.

Investec Aviation Finance said it is pioneering aviation finance as an asset class and may increase the size of the fund.

Investec Aircraft Syndicate Limited (IASL) will offer an annual cash yield of 7-9 percent with an overall return expected to be around 15 percent over five to eight years, the company said, Reuters reports.

Investec said it had attracted investment in the past from insurance companies and pension and superannuation funds, and private banking clients.