Exclusive: Japanese investors close new Lufthansa deal | News | Airfinance Journal

Exclusive: Japanese investors close new Lufthansa deal

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Lufthansa has refinanced two Airbus A321neo aircraft under a Japanese operating lease with call option (Jolco) structure utilising Japanese tax investor funds.

The deal closed on 27 January.

The aircraft are two A321neos delivered to Lufthansa in December 2020 and March 2021, Airfinance Journal Fleet Tracker data shows. They are powered by Pratt & Whitney PW1100G engines.

Tokyo Century was the equity underwriter in the transaction, while DBS underwrote the entire debt. There was no arranger on the deal.

Last year, Airfinance Journal exclusively revealed that Jolco financings contributed €700 million ($829 million) to Lufthansa’s Covid-19 warchest in the first six months, including Jolco financings on A321neo aircraft underwritten by Nomura Babcock & Brown (NBB), and Boeing 777Fs in transactions where Credit Agricole-CIB (CA-CIB) acted as overall arranger, facility agent and security trustee.

Also in 2021, ABL Aviation arranged the equity portion of a Jolco financing covering two A350-900 aircraft for Lufthansa.

Earlier this week, Airfinance Journal revealed that CA-CIB acted as overall arranger on five widebody Jolcos last year, all of them modern freighter aircraft.

The aircraft involved are three 777-200LRFs from Lufthansa Cargo; a 747-8F from Cargolux and another 747-8F from US carrier Atlas Air (currently operating for Qantas Freight).

Industry sources tell AFJ that more Japanese financing structures for passenger and cargo aircraft are in the pipeline, including a Jol financing for a 2007-vintage Boeing 777-300ER operated by Air Canada.

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Regional Snapshot

Related Data

Transaction Snapshot
Air Company | Bond issue | 01-24 | $1.5bn
Financial Close:
11/02/2024
SPV:
Some Aviation Trust
Value:
$1,500.00m USD
Full Details