Aviation Capital Group Secures Financing of Airbus Aircraft for Turkish Airlines

Aviation Capital Group, an aircraft asset manager, secured financing of one Airbus A350-900 aircraft and three Airbus A321neo aircraft for Turkish Airlines (THY).

In connection with the A350-900 financing, Aviation Capital Group’s Aircraft Financing Solutions (AFS) program utilized a portion of its $650 million secured funding facility to act as a direct lender under a finance lease to Turkish Airlines. Use of the facility allowed Aviation Capital Group to progress from mandate to providing delivery date financing in fewer than four weeks.

Following the A350-900 financing, Aviation Capital Group partnered with Société Générale to provide an Aviation Capital Group guarantee for the secured loan component of an Italian lease structure related to three A321neo aircraft, the first of which was delivered to Turkish Airlines this week.

“We are very happy that ACG was able to respond to THY’s financing needs as both a direct lender and a loan guarantor. This demonstrates the flexibility of the AFS program and our ability to utilize a multitude of financing structures to address our clients’ requirements,” Andrew Falk, managing director of Aviation Capital Group, said.

“We are delighted to have partnered with ACG so as to provide an extremely competitive financing solution tailored to THY’s needs, executed smoothly in a very short timeframe,” Emanuele Maiocchi, director of Société Générale Milan’s structured solution and leasing team, said.

“Both THY and ACG are key clients of SG’s global aviation finance franchise, and we are very pleased to have been able to serve both through the delivery of an innovative and value-added solution,” Laurent Floquet, managing director and head of aviation finance for EMEA at Société Générale, said.

“With an innovative structure embedding an ACG guarantee coverage combined with an Italian lease for three A321neo and the ACG secured loan facility for one A350-900, a competitive overall cost of financing has been obtained by Turkish Airlines with the solid commitment of the lenders during a challenging time for the aviation sector,” Aysegul Denli, senior vice president of finance at Turkish Airlines, said. “Documentation and initial deliveries are achieved in a very tight timeline despite the continuing negative impacts of the COVID crisis and the global lockdowns.”

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