Turkish Airlines closes JOLCO financing on A330

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BNP Paribas has closed financing on a new Airbus A330-300 for Turkish Airlines through an export credit agency (ECA)-backed Japanese operating lease with call option (JOLCO) structure.

The transaction features Japanese equity combined with a 12-year ECA loan provided by the Development Bank of Japan fronted by Euler Hermes, the German export credit agency, leading to a 100% financing for the airline.

The 80% loan is denominated in Japanese yen, says Turkish Airlines, which has the right to purchase the aircraft at the end of the 10th year.

The aircraft (MSN 1476) which was delivered on 3 December.

BNP Paribas was the mandated lead arranger, debt arranger, lease arranger and facility agent in the transaction.