Issue link: https://maltatoday.uberflip.com/i/1120492
23.05.19 3 NEWS FROM PAGE 1 A global corporate aviation finance specialist is predicting that as many as 56 new private jets could be delivered to Mal- ta between now and 2025. e cost of these aircraft could be in the region of $2 billion. Shearwater Aero Capital pro- vides asset-based financing op- tions to help clients purchase new or pre-owned business air- craft by securing the aircraft as collateral and intelligently man- aging the asset to preserve its value. Since its launch in 2014, it has provided over $100 million in asset-based loans on aircraft located around the world. e company's analysis reveals that Malta currently has a fleet of around 119 business jets, and 101 of these are classified as 'heavy' or large. ree of the jets are medium sized, and 15 are classified as 'light' – these represent some of the smallest aircraft models. e data does not specify how many of the aircraft are private- ly owned and how many belong to the numerous air charter companies that use Malta as a fixed base of operations. Chris Miller, Managing Part- ner of Shearwater Aero Capital, said Malta was a very attractive market for business aviation fi- nance companies like theirs. "It has larger, more expensive aircraft than some other coun- tries, and the market here is in- creasingly focusing on benefits of using financing to purchase business aircraft as opposed to just paying cash," he said. Asset-based financing pro- vides an opportunity for inves- tors to capture high-yield value in the fastest growth segments of aircraft sales – international developing markets. Last month Shearwater Aero Capital announced it's looking to raise up to $200 million to support its growth, following its strongest performance ever in 2018. e company provides finance solutions for all types of aircraft. Family offices and private eq- uity firms have provided the vast majority of its funding, and they have received an average Return on Investment (ROI) of between 13% and 15%, with no losses. Funding is relatively low risk with an average loan to value of 65%. As added investment secu- rity, all financed aircraft are in- dependently operated by third parties unrelated to the oblig- or, so in the event of a default Shearwater can quickly repos- sess and liquidate the aircraft to satisfy outstanding balances. 2018 was Shearwater's strong- est yet accounting for 60% of the company's business since its launch in 2014. Last year, its average loan size was approximately $7 million. It has provided loans from $1.5 million to $15 million for a range of aircraft from a Hawker 400 XP to a Bombardier Global 5000 and financed clients from Asia, the Middle East, Africa and the USA. KURT SANSONE JOSEPH Muscat and Adrian Delia had a tame exchange in the second and final debate of this electoral campaign e Prime Minister accused the Oppo- sition leader of leading a campaign based on "nonsense" by raising non-issues like abortion. Delia rebutted by accusing Muscat of embracing the socialists' lead candidate Frans Timmermans, who has proposed an 18% corporate tax across the EU, which would be damaging to Malta. Muscat insisted taxation was a national matter and there should be no controver- sy because both parties in Malta agreed that this should remain so. e debate formed part of the Broad- casting Authority's schedule and the leaders took pointed questions from TVM journalist Mario Xuereb. e Prime Minister criticised the PN for scaremongering about foreign work- ers when 70% of these came from EU countries. Muscat said the PN's insistence on in- troducing some cut off number for the number of foreigners was contrary to the EU principle of free movement of people. Delia hit back, insisting the PN was not against foreigners coming here to work but the lack of long-term planning by a government that was basing economic growth on population growth. Delia was critical of the government's handling of environmental issues, calling for investment in a mass transport system to cut down on the use of polluting cars. Muscat admitted the environment was a weak spot for the government but in- sisted the plan was to go for electric ve- hicles and provide free public transport. Foreign workers Joseph Muscat: "e PN's battle horse has been the fear of foreigners when 70% of these are EU nationals who have a right to come and work here. is fearmon- gering is coming from the party that had fought for EU membership. e free movement of people is a key principle of the EU so it makes no sense calling for the country to set its carrying capacity because any EU national has a right to come and work here just as us Maltese have a right to work anywhere in the EU. Foreigners are coming here be- cause there is work." Adrian Delia: "When we speak on for- eigners we are referring to the economic model adopted by the government that is basing itself on population growth. Malta is a small country and the model of growth chosen by the government is to grow the cake by increasing the pop- ulation and in the process, your slice of the cake is growing smaller. We propose an economic model that focuses on val- ue-added industries and services that create well-paid jobs for Maltese and foreigners." The sale of Maltese citizenship JM: "Adrian Delia does not seem to know that in its electoral programme of 2017, the PN had proposed keeping the IIP. Now, he is doing a U-turn on this, like he did on the Gozo tunnel." AD: "I did not agree with this scheme (the Individual Investor Programme). e bad that comes out of it is far superior to the short-term good it has achieved. is is not an investor programme… ghost for- eigners come here, pay money and leave. We need to attract foreigners who come here to invest." The EU tax danger: Tax harmonisation and Timmermans JM: "Taxes are decided by national gov- ernments. Both sides in Malta agree on this. e only people in the European Parliament who voted for unanimity on taxation matters to be removed were PN MEPs. When the PL was in Opposition it always supported the government on financial services. e problem is that when the PN is in Opposition it agrees with nothing." AD: "e Prime Minister embraces Frans Timmermans and his attempt to harmonise corporate taxes across the EU. is will damage the financial services sector in Malta, which we painstakingly built up over the years." Muscat and Delia cross swords in last debate 119 business jets based in Malta Prime Minister Joseph Muscat and Opposition leader Adrian Delia square off in their second and last debate of this electoral campaign