Allen & Overy has advised BNP Paribas, the lead manager, on the first export credit agency (ECA) supported bond in respect of ATR aircraft.  The bond is guaranteed by Coface and reinsured by SACE.

The bond was issued in connection with loans provided in relation to ten (10) ATR 72-600 aircraft for the Lion Air Group. This is the highest number of aircraft to be included within a single ECA supported bond issuance. 

Partner, Harry Upcott commented: “2015 has been an exciting year for the aviation financing industry with several market firsts on a global scale. Allen & Overy has continued to be at the forefront of the aviation financing industry and this deal is another great example of our expertise in the market.” 

Senior Associate, Jim Bell commented: “Having worked on all of the previous Coface-backed bonds for Airbus aircraft, it has been very rewarding to have advised on the first ECA-backed bond in respect of ATR aircraft. This deal highlights the continued attraction of debt capital markets, and ways in which the ECAs are continuing to support the aviation financing industry, despite the general availability of cheap debt.” 

This bond follows, and adds a different dimension to, the series of Coface-backed bonds in respect of Airbus aircraft which have been issued since 2013. Allen & Overy have advised on all of the Coface-backed bonds in respect of aircraft that have been issued to date. This is the first of those bonds to be privately placed. 

The transaction also involved a three tiered aircraft leasing structure and an aircraft spare parts financing package, which added some additional layers of complexity. 

The Allen & Overy team comprised Partner Harry Upcott, Partner Tim Conduit, Senior Associate Jim Bell and Associate Martin Brennan.