BNP Paribas arranged two capital market transactions last month on behalf of two different airlines.
The French bank was the arranger, sole bookrunner and structuring agent of a US Export-Import Bank (Ex-Im) -guaranteed bond issued by Philippine Airlines (PAL) to refinance a new Boeing 777-300ER aircraft.
The 777-300ER (MSN 38718) was delivered on 29 April and is the first of a two- aircraft mandate with BNP Paribas. The second aircraft, which has an option to refinance in the capital markets, is scheduled for delivery in November this year.
PAL, which closed its first capital market transaction through the issuing vehicle Penta Aircraft Leasing (2013), priced the bond at market swaps plus 50 basis points for a 1.691% coupon.
The transaction marked the first ever cross border capital markets issue for PAL.
BNP Paribas says the bond was 2.1 times oversubscribed, allowing the deal to price at the tight-end of the initial price talk. The deal sold entirely into the United States with banks and insurance companies driving the transaction.
The $143.1 million bond matures on 29 April 2025.
The transaction followed a $155.55 million bond, VCA Lease, issued two days earlier by Luxemburg-based Cargolux Airlines to finance a new 747-8F aircraft.
The bond featured a 12-year stretched overall amortisation repayment (SOAR) loan arranged by Crédit Agricole-CIB. BNP Paribas is the arranger and sole bookrunner in the transaction.
The 747-8F (MSN 35821) was delivered on 15 May, but the deal priced on 7 May at market swaps plus 49 bps for a coupon of 1.736%.
"Both deals priced within two days. One transaction pays better on the margin but the other transaction gets a better coupon," says a source at the bank. BNP Paribas tells Flightglobal that Ex-Im bank, which normally authorises one issuance per week in the Ex-Im bond market, recently allowed two issuances by the same bank.
Flightglobal recorded $2.14 billion worth of Ex-Im bonds issued by airlines this year through the end of May. A total of 13 transactions have closed with eight different carriers.
Source: Flightglobal, June 2013
BNP Paribas was involved in six Ex-Im bond issuances worth $877 million, according to Flightglobal data.
In May, Cargolux Airlines, Malaysia Airlines, Philippine Airlines and Atlas Air tapped the capital markets for a total of $743 million and the French bank arranged three transactions.