Deutsche Lufthansa AG’s USD 530 Million Airbus Aircraft Syndicate Financing

Allen & Overy advised two leading Japanese banks in connection with a Japanese operating lease transaction including a call option.

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.

Deutsche Lufthansa AG is the flag carrier and largest German airline which, when combined with its subsidiaries, is also the largest airline in Europe in terms of passengers carried.

The Allen & Overy team comprised partner Wolfgang Melzer (Picture) 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.

Involved fees earner: Wolfgang Melzer – Allen & Overy; Paul Nelson – Allen & Overy; Tobias Wintermantel – Allen & Overy;

Law Firms: Allen & Overy;

Clients: Norinchukin Bank; Sumitomo Mitsui Banking Corporation Europe Limited London; Sumitomo Mitsui Banking Corporation, Düsseldorf Branch;