Canada's CDPQ and GE to form $2 billion aircraft financing platform

Mon Jun 19, 2017 7:58am EDT
 
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(Reuters) - CDPQ, Canada's second-largest pension fund, and General Electric Co (GE.N: Quote) signed a commitment letter to form a $2 billion global aircraft financing platform.

The new platform, to be named Einn Volant Aircraft Leasing, will acquire fuel-efficient aircraft from global airlines and lease them back to airlines under long-term leases, the companies said in a statement.

For CDPQ, which is one of Canadian planemaker Bombardier Inc's (BBDb.TO: Quote) biggest shareholders, the deal marks an entry into the aircraft leasing and financing industry.

GE's shares were up 0.7 percent at $29.20 in premarket trading on Monday.

(Reporting by John Benny in Bengaluru; Editing by Supriya Kurane and Martina D'Couto)