China Aircraft Leasing Group (CALC) has funded two A320s delivered on lease to Pegasus Airlines in June using a Japanese Operating Lease with a Call Option (JOLCO) transaction.
The JOLCO was arranged by Asset Brok’Air, with Credit Agricole-CIB arranging the debt. The French bank also acted as the facility agent and security trustee. Legal advise on the deal was provided by Watson Farley & Williams, Bezen & Partners and A&L Goodbody, which acted for CALC. Asset Brok’Air’s legal counsel was K&L Gates, while CA-CIB was advised by Clifford Chance. Tax advisors on the deal were AK Denetim and Price Waterhouse Coopers.
This is the first time that CALC has used a JOLCO transaction to funds its aircraft deliveries. This transaction is the latest in a series of deals from CALC, which has escalated and diversified its funding strategy over the past 12 months to syndicated loans, international bonds as well as a finance lease receivables for four aircraft in June. With more than 130 A320 aircraft on order, we can expect to see this Chinese aircraft leasing company explore more alternative sources of financing throughout the rest of this year.