AirAsia
bags The Asset’s ‘Best Regional ECA-backed Facility’ award!
SEPANG, 22 March 2013
– AirAsia, the world’s best low cost airline, carves another financial excellence accolade in its roll of honour by winning the
‘Best Regional ECA–backed Facility’ award at the ‘Triple A Transaction Banking Awards 2013’ ceremony in Hong Kong yesterday, organised by ‘The Asset’ which is
a leading finance publication for Asian corporates and global institutional investors.
The
award illustrates AirAsia and its partners’ expertise and innovative
approach in securing financing
for its fleet of Airbus A320s. It’s also a significant acknowledgment
on the success of AirAsia’s deal with J.P. Morgan, inked in 2011, with
UK’s export credit agency (ECA),
United Kingdom Export Finance (UKEF) as the transaction’s guarantor.
AirAsia Berhad’s Manager of Investor Relations, Benyamin Ismail, attended the ceremony and accepted
the award on the airline’s behalf.
The ‘winning’ agreement featured a deal size of USD600 million, with J.P. Morgan as the sole arranger
and financier in acquiring 18 Airbus A320 aircraft, with deliveries scheduled in 2012 and 2013.
The 12-year financing facility was 100% guaranteed by UKEF.
Airbus has delivered ten aircraft to date with a remaining eight aircraft scheduled for delivery by end 2013.
AirAsia Berhad CEO, Aireen Omar
said, “Innovation is central to AirAsia’s growth and financial
strategies. In order for AirAsia to maintain its edge as the best low
cost airline in the world, it is vital for us to secure aircraft
financing at competitive rates. J.P. Morgan’s innovative solution
and flexible approach not only presented us with that opportunity but
also met our evolving funding requirements. We are delighted to be
working alongside J.P. Morgan to bring air travel at affordable rates to
Asia.”
Aircraft
acquisition is a major part of the airline’s expansion strategy and to
retain its leadership in the market.
Despite economic turbulence that gripped the Asia Pacific region and
posed great challenges to the aviation industry, AirAsia continued to
move forward with its plans to acquire more fuel-efficient aircraft,
essential to its growth in the region.
As specified in the agreement, the aircraft under the deal would be owned and operated by AirAsia Group’s five
associate airlines in Malaysia, Indonesia, Thailand, the Philippines and Japan.
By this, the judging panel of the ‘Triple A Transaction Banking Awards 2013’ realized the complexity posed by
the AirAsia-J.P.Morgan-UKEF transaction, due to the requirement of separate financing/leasing structures for each jurisdiction.
The judges decided in favour of the deal as it displayed intricate planning, featured unique and customized aspects
including multiple drawdown (over a two-year period) and the option to securitize the loan in the capital markets.
The
‘Best Regional ECA–backed Facility’
award is the second financial excellence award received by AirAsia Group for 2013. In January, leading international magazine
Euromoney named AirAsia Berhad as winner of the overall best
managed company in Malaysia as well as the best managed company in Asia
in the Airlines/Aviation sector for the Euromoney ‘Best Managed and
Governed Companies - Asia poll 2013’.
AirAsia also won the Air Transport News (ATN)
‘2013 Low Cost Airline of the Year’, an accolade that recognize and honour the best performers in the aviation industry, in March 2013.
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