Aviation Capital Group Upsizes Sustainability-Linked Loan
Aviation Capital Group Upsizes Sustainability-Linked Loan, strengthening its financial flexibility while reinforcing its long-term commitment to sustainability and fleet modernization.
Aviation Capital Group Upsizes Sustainability-Linked Loan, strengthening its financial flexibility while reinforcing its long-term commitment to sustainability and fleet modernization.
Aircraft Engine Lease Finance (AELF), a US-based lessor, has finalized a $31 million loan agreement with Absa Bank Group of South Africa, backed by an Airbus A330-300 aircraft currently on lease to South African Airways (SAA). The funding arrangement represents a key financing transaction that underscores continued investor interest in widebody aircraft leased to national flag carriers.
Vietnam Airlines has disclosed in its 2024 consolidated financial report that it received a $4.1 billion loan from HSBC Vietnam Bank, with an interest rate of 7%. The loan reflects a significant financial move by the flag carrier as it continues efforts to recover from the pandemic’s long-term effects and stabilize its operations.
Garuda Indonesia is set to receive a substantial $405 million shareholder loan from Danantara Asset Management, Indonesia’s sovereign wealth fund, in a significant move aimed at bolstering the national carrier’s financial stability and operational recovery. This funding is part of a wider $1 billion support package intended to ensure the airline’s long-term viability.
Aircastle, a global aircraft leasing company based in the United States, has finalized a significant financing arrangement with Mitsubishi UFJ Financial Group (MUFG) of Japan. The agreement includes a $600 million unsecured term loan, which is set to mature in April 2030, providing long-term support for Aircastle’s operational and strategic objectives.
Kenya Airways has secured critical financial relief as its 2024 annual report reveals the Kenyan government granted a waiver on both interest and principal repayments through June 2025. This move aims to ease the ongoing financial pressures faced by the national carrier, which has been battling persistent losses and high operational costs.
Dubai Aerospace Enterprise (UAE) has signed a US$300 million three-year unsecured term loan agreement with Bank of China (Dubai) Branch, Bank of China, London Branch, and Bank of China (Hong Kong). The loan proceeds will be allocated for general corporate purposes, providing Dubai Aerospace Enterprise with increased financial flexibility.
Jambojet, a regional low-cost airline based in Kenya, has obtained a $13.4 million loan from NCBA Group for the financial year ending December 2024. The funding is part of a strategic move to restructure aircraft leases and cover engine maintenance costs, reflecting the airline’s ongoing focus on operational stability and fleet reliability.
PK AirFinance, a Luxembourg-based aviation finance firm, has announced the completion of its first asset-backed securitization (ABS) transaction of 2025. Operating under the designation PK ALIFT LOAN FUNDING 6 Series 2025-1, the securitization involved the issuance of approximately $729 million in debt instruments tied to a portfolio of aviation loan assets.
Air Europa, the Spanish carrier, is preparing to settle its outstanding loan of $157 million this week, originally granted by the Instituto de Crédito Oficial (ICO) in May 2020. The loan had been extended as part of the Spanish government’s support package to help businesses during the COVID-19 pandemic, with Air Europa being one of the primary beneficiaries within the…