South America and Caribbean

Avianca Signs Sale and Leaseback Deal for 11 Aircraft

SMBC Aviation Capital and Colombian airline Avianca have today announced an agreement for the purchase and leaseback of eleven aircraft.

SMBC Aviation Capital and Avianca have today announced an agreement for the purchase and leaseback of eleven aircraft.

This transaction comprises of nine A320neo aircraft inclusive of Pre Delivery Payment (“PDP)” facilities provided partly by Sumitomo Mitsui Banking Corporation for these same nine aircraft and two standalone A321neo aircraft.

The nine A320neo aircraft covered by this transaction are scheduled to be delivered in 2018 and 2019 while the two A321neo’s have previously delivered in the third and fourth quarter of 2017 and bear manufacturer serial numbers MSN 7770 and MSN 7847, respectively. All eleven aircraft will be equipped with CFM International LEAP-1A engines.

The transaction is the single largest purchase and leaseback transaction for SMBC Aviation Capital this year and supports the company’s continued growth in the Americas region and Latin America in particular. Avianca has been a long-term customer of SMBC Aviation Capital dating back to 2003.

Lucia Avila, Corporate Finance Director said:

“We are delighted to enhance our fleet with the A320neo and A321neo aircraft types which will bring operational efficiencies and an upgraded customer experience. Financing these first deliveries in a well-structured way including PDP Financing is of great pride to the airline.”

Mr. Peter Barrett, CEO, SMBC Aviation Capital added:

“We are very pleased to conclude this transaction of scale with one of our longest standing customers, Avianca, in a region where we are continually growing our presence.

“This transaction is a further example of our ability to work hand in hand with other parts of our shareholder group to provide our customers with innovative and comprehensive financing solutions.We look forward to continuing to grow and strengthen our relationship with Avianca and to assist the airline with its future growth plans.”

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