ABL Aviation has delivered one new Airbus A321neo aircraft on long-term lease to Wizz Air, which was financed using a Japanese operating lease with call option (JOLCO) structure. This aircraft delivery is the first of three to be delivered under the same structure during this year.
This transaction, the first JOLCO that ABL Aviation has completed with Wizz Air, was managed on behalf of the lessor’s Japanese partner. ABL Aviation arranged the equity on the transaction while Crédit Agricole CIB arranged the debt, providing Wizz Air with 100% financing.
The transaction incorporates sustainability linked features structured by CA-CIB, as the terms of the financing are indexed on Wizz Air’s future achievements in respect of one ambitious sustainability-linked Key Performance Indicator (KPI), the achievement of the CO2 emissions target value for passenger transportation performance (RPK: revenue passenger kilometres) of Wizz Air.
ABL Aviation chief executive Ali Ben Lmadani commented: “We are delighted to support Wizz in its growth through the financing of its new aircraft.
ABL Aviation’s independence allows us to offer flexibility to airlines to select the debt structure and lender that provides the best economic outcome. On this transaction, we were pleased to work with Crédit Agricole CIB for the first time to combine our respective debt and equity offers into the optimal solution for Wizz. We look forward to closing a further two aircraft in the coming weeks as part of this mandate.”