ABL Aviation has financed €170 million worth of ground support equipment (GSE) with ground service support provider Swissport.
Structured as a multi-draw senior secured facility with an accordion up to €270 million, the deal is ABL’s inaugural financing in the sector and the first-ever global credit facility secured for a GSE operator.
“ABL applauds Swissport’s commitment to sustainability and is proud to help the company build its eGSE fleet,” said Ali Ben Lmadani, CEO of ABL Aviation.
He added: “We are grateful for the confidence Swissport placed in ABL to close this important deal and we look forward to future collaborations. We would also like to recognize KfW IPEX-Bank, NatWest Plc, and the many other partners who contributed to this milestone transaction.”
Having previously pledged to transition over half of its worldwide fleet from diesel- and gasoline- to zero emission, electric-powered ground support equipment (eGSE) by 2032, Swissport will use the credit facility to fund continued investment in eGSE including pushbacks, stairs, ground power units, de-icers, and baggage tractors.
Jourik Hooghe, chief financial officer of Swissport International AG commented: “Swissport is aiming to achieve a 55% share of electric GSE by 2032 and net-zero emissions by 2050, and we have a comprehensive 10-year decarbonisation plan in place to reduce the environmental impact of our operations.”
ABL served as the sole structuring agent and book runner for the deal, achieving oversubscription by leading American, European, and Canadian pension funds, credit funds, and banks.
KfW IPEX-Bank and NatWest were selected to serve as financiers for the transaction. Vedder Price (New York), led by Cameron Gee, represented the borrower and worked closely with the ABL team, led by Finnian O’Neill, to tailor a solution to Swissport and the financiers’ needs. Norton Rose (Munich) represented the lenders.