(Reuters) - CDPQ, Canada’s second-largest pension fund, and General Electric Co (GE.N) 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) 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