Aircraft financing – ECA covered

BayernLB finances an ECA-covered B777-300ER aircraft for KLM and acted as Mandated Lead Arranger in this transaction as well as Loan Agent vis-à-vis the guaranteeing United States Export-Import Bank (US Ex-Im) and as Sole Lender.

Subject of the transaction is a vintage 2021 Boeing B777-300ER. It is the largest twin-engine commercial aircraft in the world and, thanks to ETOPS certification, can also be used economically on intercontinental routes.

The financing comes with a 100% ECA-coverage (economic and political) through US Ex-Im, guaranteeing both the loan amount incl. the financing of the ECA premium and accrued interest.

For BayernLB it’s another milestone deal within its decades long experience in ECA covered aircraft financing, appreciating the long and fruitful cooperation with KLM as well on the asset finance as also on the corporate finance side, says Oliver Geldner, Sector Head Aviation & Space at BayernLB. Another Ex-Im covered deal we had together with KLM has just expired, so this is a welcome sequel.

KLM was established on 7 October 1919, making it the world’s oldest airline still operating under its original name.

Carrying 34.1 million passengers and 621,000 tonnes cargo in 2019, KLM and KLM Cityhopper form the heart of the KLM Group. Via a vast network of 92 European cities and 70 intercontinental destinations, KLM offers direct services to key economic centres all over the world.

KLM is a partner in the SkyTeam Alliance, which offers passengers even more possibilities, jointly serving 1,063 destinations in 173 countries. The KLM Group also includes the wholly-owned subsidiaries Transavia as an important leisure carrier in the KLM Group and Martinair as freight arm.

Following the merger with Air France in 2004, KLM has pursued the concept of 1 Air France-KLM Group, 2 airlines, and 3 core activities (passengers, cargo and engineering & maintenance). Together with Air France, KLM plays a pioneering role in the European air transport industry. KLM pursues profitable growth in order to achieve its own commercial objectives as well as more general economic and social objectives.