Promoting Turkish Airlines' Growth Strategy
In a significant move, CIB, a leading financial services provider, has successfully arranged a complex financing solution for Turkish Airlines' latest acquisition – an Airbus 350-900 aircraft.
At the helm of this operation was Deniz Billion, the Executive Director of Aviation Finance for EMEA at CIB. Billion's expertise was instrumental in securing this deal for Turkish Airlines.
The financing for the aircraft is structured as a JOLCO (Japanese Operating Lease with Call Option) with the senior debt wrapped by the Balthazar insurance product. This mixed structuring offers numerous advantages to all parties involved, including scalability, standardization, cost savings, and improved collaboration.
Turkish Airlines was the launch customer of the Balthazar insurance guaranteed aircraft financing product back in 2019. This innovative financing solution has been instrumental in optimizing the overall cost of borrowing for the airline.
CIB is proud to have arranged the first JOLCO scheme combined with a Balthazar insurance supported debt for Turkish Airlines. The bank's extensive experience in arranging JOL/ JOLCO structures for major airlines and combining them with a variety of financial products was evident in this transaction.
In this transaction, CIB acted as the lead arranger and debt underwriter, responsible for integrating the financing and equity components and underwriting the JPY denominated senior debt.
The use of the JOLCO structure and Balthazar insurance marks a strategic move by Turkish Airlines to combine traditional methods with innovative financing solutions. By rejuvenating their fleet with new generation, fuel-efficient aircraft, Turkish Airlines aims to reduce its carbon footprint per mile flown.
CIB's commitment to supporting Turkish Airlines, an airline that understands that growth and sustainability can thrive together, is evident in this transaction. The bank is pleased to stand alongside Turkish Airlines as they embark on a new phase of expansion.
In line with this commitment, CIB opened a new branch in Tokyo in 2023 to offer more Japanese linked solutions to clients. This move underscores CIB's dedication to providing tailored financial solutions to meet the unique needs of its clients.
Jean Chedeville, the Global Head of Aviation at CIB, expressed his satisfaction with the successful transaction, stating, "We are delighted to have supported Turkish Airlines in their growth strategy. This transaction is a testament to our expertise in arranging complex financing structures and our commitment to sustainable aviation."
With Turkish Airlines aiming at doubling its fleet to reach 800 aircraft in the coming decade, CIB looks forward to continuing its partnership with the airline in achieving their ambitious expansion plans.
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