Ryanair announce $1.6BN aircraft financing agreement

Ryanair announce $1.6BN aircraft financing agreement

Ryanair, the world’s favourite airline today (31 July 09) announced that it has awarded mandates to a syndicate of banks for approximately $1.6bn of financing for 55 aircraft delivering between November 2009 and October 2010.  The syndicate of banks is comprised of BNP Paribas, Calyon, and Sumitomo Mitsui Banking Corporation.  The banks have been mandated to act as joint arrangers for Ryanair’s US Ex-Im Bank Euro dominated export credit facility.  Calyon have underwritten 25 aircraft and BNP Paribas and SMBC have each underwritten 15 aircraft. 

Commenting on this financing, CFO Howard Millar said:

 

“Ryanair is pleased to announce the agreement for approximately $1.6bn of underwritten funding for 55 aircraft to be delivered between November 2009 and October 2010 with our partners BNP Paribas, Calyon and SMBC.  It is testimony to the financial strength of Ryanair and the standing of our partners BNP Paribas, Calyon and SMBC that we have been able to complete a facility of this size in the current challenging financial markets.  The securing of this facility will enable Ryanair to continue to grow its business and bring more competition, choice, and lower fares to consumers in Europe”.

 

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Commenting on this financing, Eric Eugène, Global Head of Transportation Group BNP Paribas, José Abramovici, Global Head of Aviation Group & Rail Finance Calyon and Craig Macdonald, Head of Aircraft Finance SMBC, collectively said:

 

“The Banks were most pleased to jointly support the financing of 55 B737-800 aircraft for one of the leading European carriers.  Ryanair has once again proven to be cost efficient not only in its operations, its aircraft purchasing, but also in negotiating the terms and conditions of its jumbo 55 aircraft financing in an unprecedented period of scarce liquidity from the aviation banking universe