Turkish Airlines taps capital markets with yen dominated bond

Source: Flightglobal.com
This story is sourced from Flightglobal.com

Turkish Airlines made its US Export-Import Bank (Ex-Im) bond debut last month with a yen-dominated transaction, according to sources.

The leasing company issued the 12-year bond through a vehicle, Mercury Aircraft Leasing.

The 12.58 billion yen ($128.4 million) bond priced at a 1.345% coupon, the equivalent to yen mid-swap spreads plus 50 basis points.

Mizuho was the bookrunner of the transaction, sources indicate.

The transaction further diversifies Turkish Airlines’ funding sources. The Istanbul-based carrier mandated BNP Paribas for the financing of three Boeing 737-800 aircraft delivering in the first quarter of this year. The French bank is the lease arranger, debt arranger and facility agent of a Japanese operating lease with call option (JOLCO) covering the three aircraft. The aircraft delivered between January and April.

Turkish Airlines says in a filing that the Mercury Aircraft Leasing entity involves a Boeing 737-800 (MSN 42002) and is the fourth unit under the financing.