Allen & Overy advises Japanese banking syndicate on the financing of seven Airbus aircraft for Lufthansa
09 January 2020
Allen & Overy advised two leading Japanese banks in connection with a Japanese operating lease transaction including a call option (JOLCO). The transaction serves to finance seven Airbus aircraft for Deutsche Lufthansa AG, including two A350-941 and five A320-271N aircraft. The total volume amounted to approximately USD 530 million.
The JOLCO transaction, which involves Japanese equity and debt capital in a sale-and-lease-back structure, was financed by Sumitomo Mitsui Banking Corporation, Düsseldorf Branch, und Norinchukin Bank, Tokyo. Sumitomo Mitsui Banking Corporation Europe Limited London acted as security agent.
Japanese operating lease transactions represent a common form for airlines to optimise the cost structure in the financing of aircraft fleets.
The Allen & Overy team comprised partner Wolfgang Melzer and senior associate Dr. Tobias Wintermantel (both banking and finance, Frankfurt). Additional support was provided by a team led by partner Paul Nelson (banking and finance) from the London office.
Partner Wolfgang Melzer and his team regularly advise on aspects of asset finance for aircraft, rolling stock or ships and on cross-border leasing finance.