BNP Paribas Arranges $147MM for Finnair

BNP Paribas arranged secured financing of an Airbus A35-900 XWB for Finnair. The aircraft is the Finnish airline’s third A35-900 XWB model and was delivered on December 30, 2015.

The transaction amounted to approximately $147 million, implemented using a Japanese operating lease with call option (JOLCO) structure, where the transaction amount is treated in Finnair’s IFRS accounting as a loan and the aircraft as owned.

“We are pleased to have secured financing at highly competitive rates for the full market value of our latest A350-900 delivery,” said Finnair CFO Pekka Vähähyyppä. “This transaction, which involves investors in our core markets of Europe and Asia, is further evidence of the continued confidence shared by the financing community in Finnair, and the critical role of the A350 fleet in our growth strategy.”

As previously announced, Finnair already accepted delivery of its the first two A350s and expects two more to be delivered in 2016 and 2017. Those four were financed through sale and leaseback agreements with GECAS.

Finnair’s first A350s have commenced revenue flights from Helsinki to Shanghai, Beijing and Bangkok. The next A350 destinations will be Hong Kong and Singapore.

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