Stephen Harwood (Singapore) Alliance Advises Transportation Partners On World's First Ever Coface Guaranteed Bond Transaction Financing ATR Aircraft.

Legal News & Analysis – Asia Pacific - Singapore - Asset Finance - Shipping, Maritime & Aviation

13 January, 2016


Stephenson Harwood (Singapore) Alliance has advised Transportation Partners on a US$143.7 million Coface guaranteed floating rate notes issuance due 2025 for Aeronautic Investments 18 Limited.


This landmark transaction marks Coface’s first guaranteed bond transaction for an Asian client. It also represents the world’s first-ever Coface guaranteed bond transaction financing ATR aircraft. 


The notes are backed by a guarantee of Compagnie Française d’Assurance pour le Commerce Extérieur, acting for the account of the French State. BNP Paribas acted as the sole lead manager for the transaction. 


Saugata Mukherjee, Stephenson Harwood's Partner in Singapore, said: "The team at Stephenson Harwood (Singapore) Alliance is delighted to have supported Transportation Partners on this unique transaction." 


Aeronautic Investments 18 Limited is an issuing vehicle set up within an aircraft financing structure for Transportation Partners. In 2014, Transportation Partners took delivery of ten ATR 72-600 turboprop aircraft and leased them to Wings and Malindo Airways. The financing was structured through ten Coface guaranteed loans arranged by BNP Paribas. The proceeds from the transaction were used to refinance those loans at a lower funding cost to Transportation Partners. 


The team comprised of Partner, Saugata Mukherjee, together with Adam Smart, Jane Bay and Effariza Nurwati.