Korean Air Lines engine-leasing deal honored at annual China Air Finance Development Summit Awards
The China Air Finance Development Summit Awards, held in September during the multi-day China Air Finance Development Summit in the coastal city of Tianjin, bestowed its Innovation Award on a €64 million jet-engine leasing deal led by Milbank, Tweed, Hadley & McCloy LLP Asia aviation and asset finance practice leader Paul Ng.
Mr. Ng, based in Milbank’s Singapore office, advised Bank of Communications Financial Leasing Co. (BOCFL) on the financing of a six-year lease of four jet engines to Korean Air Lines. The transaction had the added complexity of being denominated in euros—the first such euro-denominated lease financing from a China-based financier. US dollars are the normal currency for international airline financings. The deal is worth approximately €64 million.
BOCFL, headquartered in Shanghai, is one of China’s three largest leasing companies, with more than 40 airline clients based in Asia, Europe, and the Americas.
Mr. Ng said: “Milbank is pleased to be able to demonstrate its in-depth expertise by delivering on this multidimensional transaction. Both our client, BOCFL, and Korean Air Lines have expressed that they are impressed by the speed and efficiency with which the deal was put together and completed.”
Singapore-based Transportation Group associate Hui Ling Teo also advised BOCFL on the transaction.
The China Air Finance Summit has become a prestigious gathering of aviation finance professionals, clients, and media, with the added cachet of being the site of the China Air Finance Awards, which were created to recognize the tremendous growth of the country’s aviation finance industry. The awards dinner, a lavish event hosted by popular Chinese TV personalities, featured remarks by government and business officials and performances by recognized Chinese artists.
Milbank’s Aviation Practice Group was recognized by AirFinance Journal for 12 separate “Deals of the Year.” The practice was lauded for playing a pivotal role on landmark aviation transactions across Asia, the Middle East, Europe, North America and Latin America.
