Investec Aviation Finance has provided €60m financing to Challenge Group to help with the acquisition and conversion of passenger planes into freighter aircraft.

Investec said the capital will enable the international air cargo company to buy and transform four Boeing 767-300ER planes.

Joseph Barnwell, a senior associate at Investec Aviation Finance, said: “The financing solution we provided for the Challenge Group highlights Investec’s ability to create an innovative financing package that not only takes into account the value of the aircraft in their passenger and freighter configurations but also Challenge Group’s ability to utilise these assets before and after conversion.”

Michael Koish, Challenge Group’s CIO, said the conversion programme is the “keystone in Challenge Group’s expansion strategy” as it allows it to increase its current fleet of eight widebody freighters.

Koish said: “This was no straight-forward financing deal but thanks to strong cooperation and out-of-the-box thinking we were able to solve some of the complicated issues that popped up along the way.

“Hopefully this will be the first of many deals to come with Investec, as Challenge Group continues to assert its ambition to strengthen its position in the air cargo sector.”

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