LONDON – LawFuel.com – Allen & Overy has advised Etihad Airways, the UAE’s national carrier, on an innovative and ground breaking transaction which has seen Korean financial institutions provide a 15 year 100% financing for Etihad’s second new Airbus A380 aircraft. With no other bank debt support, it is the first pre-funded 100% financing by Korean investors for a brand new Airbus A380.
The funding was provided by way of a private placement with a group of major Korean institutional investors and was arranged by aviation finance specialists Magi Partners in conjunction with their Korean associates, Youjee Partners, following non-deal road show meetings between Etihad Airways and Korean investors in early 2014, and a competitive global request for proposals last summer.
Mario Jacovides, Global Head of Structured and Asset Finance at Allen & Overy commented: “This is an innovative new transaction that is pioneering in so many ways. To work with Etihad on the first ever fully Korean-backed Finance Lease for its new Airbus A380 aircraft has been diverse and exciting. ”
The aircraft is the second of a fleet of ten A380s on order from Etihad Airways to enter service and, like all the airline’s A380s, features The Residence by Etihad.
The A&O team acting for Etihad was led by Mario Jacovides, with assistance from associate Tom Maddison.