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Turkish Airlines Records $12Bn Aircraft Financing Deals in 10 Years

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Turkish Airlines has crowned its success with 21 international finance awards in the past 10 years for raising $12 billion with three new awards for its successful aircraft financing models.

The three new awards won at Bonds & Loans Awards Night and which brought the number of awards on its financial models to 21 include “Transport Finance Deal of the Year”, “Trade and Export Finance Deal of the Year” and “Structured Finance Deal of the Year”.

Turkish Airlines has been awarded as the runner up in “Trade and Export Finance Deal” category by Bonds & Loans for its brand new B777-300ER aircraft delivered in September 2015.

The total financing builds up to 16,8 billion Japanese Yen and the structure is a combination of an innovative, complex and unique U.S. Ex-Im Guaranteed French Tax Lease.

This structure has been successfully implemented by Turkish Airlines by placing the financing in Japanese Yen rather than placing the predominant currency in aircraft finance which is American Dollar.

The structure was arranged by BNP Paribas, where tax leverage is achieved in this deal together with Ex-Im Bank Guarantee coverage, enabling Turkish Airlines to use the advantages of both export guarantee and tax leverage leading to a low cost of financing for the subject aircraft.

Turkish Airlines has been awarded as the runner up in the “Structured Finance Deal of the Year” category as well by Bonds & Loans for its brand new 3 A321-200 aircraft delivered between September and November 2015.

Turkish Airlines’ primary goal was to obtain a long-term and diversified cheap funding source.

Accessing to the Japanese capital markets have added another source together with the banking market and contributed to diversify the geographic exposure.

Moreover, this transaction has also achieved an attractive 100% LTV financing at low cost by combining with Japanese equity.

This deal is the first-ever JPY denominated EETC for aircraft financing in the world, which has established a brand new financing structure by integrating conventional EETC with JPY capital markets.

This fully worked-out structure put multiple aircrafts into multiple classes and provided liquidity support from a Japanese bank, which boosted the acquisition of higher rating than the obligor‘s credit.

‎Flag carrier has also been awarded as the finalist in the “Transport Finance Deal of the Year” category by Bonds & Loans at the awards ceremony held in İstanbul, for its brand new 1 B777-300ER and 8 B737-800 aircraft delivered between May and August 2016.

The total financing builds up to 430 million Euros and the structure is a combination of an innovative, complex and one-of-a-kind U.S. Ex-Im Guaranteed format French Tax Lease with Bridge Loan.

Tax leverage is achieved in this deal together with Ex-Im Bank Guarantee coverage, enabling Turkish Airlines to use the advantages of both export guarantee and tax leverage leading to a low cost of financing for the subject aircraft.

Also, as US Ex-Im is not active at the moment, there are bridge loans embedded into the Ex-Im guaranteed structure for each aircraft, leading to the benefit of having lower costs of financing also until Ex-Im coverage is available.

Ms. Ayşegül Denli, Turkish Airlines’ SVP Finance, received the awards on behalf of the carrier. In her acceptance speech she emphasized her great pride in winning the honor.

She continued by saying that; “It’s very important and also valuable for us to win 3 awards for the financial models that we implemented in 2016, which was a very tough year on global scale. Turkish Airlines exhibits leading performance in all areas of aviation, constantly working for continued success.

“As a result of this ongoing effort, we have received a wide range of awards which provide a substantial encouragement and satisfaction to our team. I want to thank both Bonds & Loans and our devoted team, which has put their hearts and souls into these projects.”

Turkish Airlines has had very innovative and first-of-a-kind financing models rewarded by Jane’s Transport Finance, Global Transport Finance, Bonds & Loans, and Airfinance Journal in respect of its financing models that have been put in practice in 2006, 2008, 2011, 2012, 2013, 2014, 2015 and 2016.

Turkish Airlines has crowned its success with 21 international aircraft finance awards in the past 10 years for raising 12 billion US Dollars.

Its various innovations include being the first ever JPY denominated EETC; the first ever ECA backed French Lease;  the first ever US Exim backed French Lease; the first ever ECA backed JOLCO Lease; the first ever US Exim backed JPY denominated Convertible Bond; and the first ever ECA Guaranteed Italian Tax Lease in Japanese Yen denomination.‎

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Logistics

Aramex Launches ‘Shop & Ship’, Takes Delivery From Global Retailers

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By peter oluka

Aramex, the disruptive leader in the global logistics and transportation industry, has introduced its easy-access online shopping and shipping delivery service, Shop & Ship (S&S) in Nigeria.

The Company boosts that online shoppers can now order from popular global stores such as Amazon who do not deliver directly to Nigeria.

Shop & Ship (S&S) is an international shipping solution that enables members to shop from online merchants in 23 countries across the world.

Commenting on the new service, Faisal Jarmakani, managing director of Aramex Nigeria, said: “We are committed to serving the needs of the Nigerian market and constantly looking for ways to make online shopping affordable and stress-free.With Shop & Ship, we have addressed the two critical concerns of online shoppers – restriction and speed.”

“Processing and onward delivery are concluded within 3-6 working days while the restrictions from global online stores, which have made direct delivery difficult, have been eliminated with the provision of 23 addresses across the world where shipments can be delivered for onward transfer to members in Nigeria,” added Faisal.

Available in over 80 destinations globally, the S&S service enables members to purchase and ship goods from desired countries spanning across locations in the USA, UK, Australia, Canada, China, Egypt, France, Georgia, Germany, Hong Kong, India, Italy, Japan, Jordan, Lebanon, Malaysia, Singapore, South Africa, South Korea, Spain, Thailand, Turkey and United Arab Emirates, which are some of the most popular shopping destinations in the world.

With this service, Aramex hopes to further its mission to use technology driven solutions to grow and develop Nigeria’s multi-billion e-commerce industry.

Jarmakani further spoke on the footprint so far since Aramex’s relaunch in Nigeria in 2016.

“Aramex is a global leader in shipping. We are one of the leading global providers of ecommerce, logistics and transportation solutions, with presence in 60 countries.

“Nigeria remains an important market for us. As we journey towards the Digital Economy, we will see a surge in ecommerce activities. Aramex is here to facilitate these transactions, aid international trade and boost the economy.

Speaking on how the service meets the specific needs of Nigerians, the MD said that Shop & Ship makes it easy to shop from global stores like Amazon, Boohoo, Macys etc. right here in Nigeria.

“It takes away the restriction and limitation of online shopping from foreign stores. The service also saves shoppers time as shipments are delivered between 3-6 working days. S&S addresses these two critical concerns of online shoppers in Nigeria – restriction and speed”, he added.

How Does The Service Work?
“The service is easy to use in just one step – register for a Shop & Ship lifetime membership on our website. Once registered, you get 23 personalized physical addresses in Ontario, Shanghai, Cairo, Paris, Tbilisi, Frankfurt, Hong Kong, Mumbai, Milan, Tokyo, Amman, Beirut, Malaysia, Singapore, Johannesburg, Seoul, Barcelona, Bangkok, Istanbul, Dubai, London, Sydney and New York.

“You can use these addresses to shop from Canada, China, Egypt, France, Georgia, Germany, Hong Kong, India, Italy, Japan, Jordan, Lebanon, Malaysia, Singapore, South Africa, South Korea, Spain, Thailand, Turkey, United Arab Emirates, UK, Australia and USA and we’ll deliver them to where you live at reasonable shipping rates”.

Of course, despite the growing appeal of ecommerce, it is still at the rudimentary stage in Nigeria as the pace of adoption and acceptance is decidedly slow, Jarmakani spoke on how this can be remedied: “Some of the limitations to ecommerce growth are high cost of shipping goods to and from Nigeria, low penetration of credit cards usually required to shop online (debit cards are the common payment cards available in Nigeria), unreliable distribution and delivery processes, etc. Removing or reducing these impediments will spur ecommerce in Nigeria.

“This is what we have set out to accomplish here at Aramex, with our Shop & Ship service. We are here to ease the shipping of goods into Nigeria and provide our clients with world class distribution and delivery process at very reasonable cost”.

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Aero Contractors gets NCAA Approval for C-check Maintenance

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Nigeria’s oldest airline, Aero Contractors, has received certification from the Nigerian Civil Aviation Authority (NCAA) to handle C-checks on Boeing B737-300, B737-400 and B737-500.

Capt. Ado Sanusi, Managing Director of Aero Contractors, made this known while briefing newsmen on yesterday in Lagos.

Sanusi said the NCAA approval that takes effect from Sept. 2 was given to the Aero Contractors’ Aircraft Maintenance Organisation (AMO) at the Murtala Muhammed Airport, Lagos.

”This represents for us a significant achievement and is a major instrument for our turn-around efforts. This feat has benefits far beyond Aero Contractors.

”The fact that C-check on the B737 Classic can now be performed in Nigeria by Aero Contractors will reflect directly in significant drop in maintenance cost for airlines in Nigeria and the sub-region as well as reduction in downtime for such checks.”

Explaining further, he said that a normal C-check cost between $1.8 million to $2 million outside the country, adding that performing it in Nigeria would reduce the demand for foreign exchange as airlines could now pay in Naira.

“So, it is a very positive development for Nigerian airlines and the Nigerian aviation industry because it will improve the ease of doing business,” Sanusi added.

He disclosed that the airline spent N60 million to renovate and expand the MRO facility which had been in existence for over 50 years in order to meet the required local and international standards.

According to him, the airline has also signed Memorandum of Understanding (MoU) with international partners, including the maintenance unit of Ethiopian Airlines and South African Technik, to render assistance on the C-checks. Sanusi said that domestic airlines alone operate about 22 B737 Classics, stressing that the facility would have a viable market.

“We want to appeal to the Federal Government to give us the Free Trade Zone status. “We want to have free access to import tools and aircraft spares without hindrances from Customs when our demand increases,” he said.

The Aero boss commended the NCAA for its professionalism and encouragement during the certification process.

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Construction: FAAN Advises Passengers on How to Meet Up with Flights

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The Federal Airports Authority of Nigeria (FAAN) has notified passengers and other airport users that the Lagos State Government has commenced the reconstruction of the Murtala Muhammed Airport Road, Lagos

The project which would last for 15 months is aimed at expanding the road for better service to users.

Appealing for understanding from all while the project last, Yakubu Henrietta, general manager, Corporate Affairs at FAAN, urged passengers and other airport users plying the road to always leave their homes earlier than usual, so as to be able to get to the airport in good time and also avoid missing their flights.

Specifically, the design of the project includes the reconstruction and expansion of the existing carriage to three-lane Expressway on both directions, construction of two-lane Service Road in both directions, construction of Ramp Bridge to provide a U-turn from Ajao Estate to Airport, construction of a flyover at NAHCO/Toll Gate and drainage works.

Others include the removal of existing Pedestrian Bridge at Ajao Estate and construction of Pedestrian Bridges at Ajao Estate and NAHCO/Hajj Camp, construction of Slip Road to provide access to Ajao Estate, construction of Lay-bys and installation of Street Lights, among others.

“Meanwhile, security agencies and other traffic officers have been mobilized to ensure that road users and passengers have relatively hitch free passage while the road is under construction.

“The Authority, in conjunction with the Lagos State Government, has put in place necessary measures to mitigate the effect of the construction on the road users while the project last”, she said.

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