Banco Santander structures A350, 787 ESG leases | News | Airfinance Journal

Banco Santander structures A350, 787 ESG leases

Crianza Aviation has arranged sustainability-linked operating leases for certain Boeing 787 and Airbus A350 aircraft.

Banco Santander acted as the ESG (Environmental, Social, Governance) structurer of the deal.

They are believed to be the first sustainability-linked operating leases structured for an airline. 

The transactions are linked to an MSCI ESG rating, which will undergo periodic review and validation.

The leases include a two-way step-up/step-down pricing mechanism to incentivise improvements in ESG performance and demonstrate commitment to a sustainability strategy.

Crianza, established in South Korea in 2016, said the ESG leases “further enhance the quality” of its aviation portfolio, which has “performed robustly during the pandemic”.

“We are very pleased having been able to implement this novel structure based on the strong relationship and close collaboration between the teams involved. It provides an excellent example of Crianza’s strategy of providing added value to its airline clients and actively addressing a global topic of key importance for its clients as well as the whole aviation industry,” said Crianza chief executive officer Baldur Vander.

Crianza emerged from a strategic partnership between IMM Investment, Cerritos Holdings and EastMerchant Capital as the first aircraft leasing company in the Korean aviation market. While benefitting from IMM’s and Cerritos’ strong network with Korean institutional investors, Crianza capitalises on EastMerchant’s more than 20 years of experience in the aviation industry, being an adviser, arranger and asset manager.

Earlier in 2021, Crianza and EastMerchant completed sale and leaseback transactions with Singapore Airlines (SIA) for an A350-900 aircraft and two Boeing 787-10 widebodies.

Airfinance Journal broke the news on that deal, noting that insurance-guaranteed loans were used for the Crianza A350 deal and AFIC-supported financing to acquire the 787s.

Crianza also has three Boeing 787-9 aircraft in its portfolio, placed on 12-year operating leases, through 2031, with UAE carrier Etihad Airways.

Airfinance Journal understands that Crianza is currently in the market seeking new lessees for two of its other aircraft, both Rolls-Royce Trent 772B-60-powered Airbus A330-300s manufactured in 2015, that recently came off first lease with SIA.

Transaction SnapshotEtihad | Sale leaseback | 03-19 | 3x787-9

Financial Close:
13/03/2019
Full Details

Transaction SnapshotCrianza Aviation | AFIC-supported financing | 04-21 | $256m (est) | 2x787-10

Financial Close:
13/04/2021
SPV:
AP LEASING 60264 DESIGNATED ACTIVITY COMPANY; AP LEASING 60263 DESIGNATED ACTIVITY COMPANY
Value:
$256.00m USD
Full Details

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