Airbus A320

WFW advises on European ECA-backed financings for CALC

13 August 2015

Watson Farley & Williams is pleased to announce that it has advised UK Export Finance (on behalf of itself, COFACE and Euler Hermes, as the European Export Credit Agencies), TD Bank, N.A. as ECA lender and ING Capital LLC as facility agent in relation to three financings backed by guarantees from the European Export Credit Agencies for Airbus A320 aircraft.

The financing for the third aircraft to be delivered under a 12-year operating lease agreement between China Aircraft Leasing Group Holdings Limited (“CALC”) and Air India Ltd (“Air India”) completed on 3 August 2015.  The first two deliveries took place on 3 February and 9 July 2015.

The ECA-guarantee arrangement is the first European ECA-backed financing for CALC and is described by Mr Christian McCormick, Managing Director – Finance of CALC, “as an important international financing support for our global business expansion strategies”.

The transaction parties also included ING Capital LLC and TD Securities as co-arrangers, Wilmington Trust SP Services (Dublin) Ltd as the security trustee and Credit Agricole Corporate & Investment Bank (CACIB) acting as the ECA financing advisor to CALC.

The WFW team was led by Rex Rosales, Global Head of Transport at WFW, with assistance from Hilary Loughnane, Jamie Cusworth and Christian Hermanussen.

Partner Rex Rosales commented: “ECAs are a vital element in asset financing within the aviation industry and WFW is proud to be among the panel of firms advising the European ECA on new Airbus financings.  We are pleased to work with UK Export Finance, COFACE and Euler Hermes, alongside the lenders on this significant deal, the third European ECA-backed financing for CALC, which allows Air India to continue to expand its fleet with modern Airbus A320 aircraft.”

David Godfrey, Chief Executive of UK Export Finance, said: “UK Export Finance would like to congratulate China Aircraft Leasing Company on their first ECA-backed aircraft financing, and to thank all parties involved in this pioneering transaction.”