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ABL Aviation Structured the First AFIC JOLCO Financing of a 787-9 for EL AL

ABL Aviation has structured the first JOLCO ever funded with AFIC supported debt. It provides El Al with 100% financing for the aircraft with the debt provided by a Japanese bank insured by Sompo Japan Nipponkoa Insurance (“SJNK”), and equity provided by Japanese investors and underwritten by ABL Aviation’s Japanese exclusive partner.

ABL Aviation has structured, as global equity and debt arranger, the first JOLCO ever funded with Aircraft Finance Insurance Consortium (“AFIC”) supported debt. It is also a 100% Japanese financing structure where the debt is provided by a Japanese bank and equity by Japanese investors.

Using this structure, EL AL Israel Airlines Ltd., financed a brand new B787-9 that delivered smoothly on 18 June 2019.

The transaction was also the first JOLCO arranged by ABL Aviation, following the signature of an exclusive partnership (providing a capacity of 1.5 billion USD of JOLCO financing per year) with its Japanese exclusive partner.

Available exclusively through global insurance broker and risk adviser Marsh, AFIC has been key in adjusting its structure to make it compatible with the requirements of the JOLCO structure.

Nishimura & Asahi acted as legal counsel to the Lessor, Norton Rose Paris represented the lender and Milbank was AFIC legal counsel.

“For me this transaction is a milestone for ABL Aviation, it is the first JOLCO we closed, and it is one of the most innovative transactions because it is the first time ever the AFIC product is combined with Japanese equity. It is also a 100% Japanese financing since the equity, the debt and the insurer are Japanese. I hope to do many more with EL AL and other airlines in the coming months. I would also like to thank my friend and colleague Marc Bourgade and his team for their amazing work in this transaction, Bob Morin from AFIC and the EL AL finance team who trusted our execution capability” said Ali Ben Lmadani, CEO ABL Aviation.

“EL AL Israel Airlines is happy to finance an aircraft, for the first time by a Japanese bank supported by AFIC insurance product. Such financing emphasizes the strengthening of the connection between the two countries. We believe that those connections will be further strengthened by opening the direct route between Tel Aviv and Tokyo by EL AL in March 2020” said Yancale Shahar, EL AL Treasurer.

ABL Aviation is a global fully independent asset management company with five offices around the world in Dublin, Casablanca, Hong Kong, New York and Dubai, and an established track record of sourcing and managing quality aviation investments for its investors with no conflict of interest.

The JV between ABL Aviation and its exclusive Japanese partner, capitalises on both parties’ expertise investing equity into new and mid-life aircraft in both the passenger and freighter space, and debuts with this unique and innovative AFIC supported JOLCO transaction. The JV will offer airlines both JOL and JOLCO solutions.

EL AL Airlines, Israel’s national carrier, was established in 1948 and offers more nonstop flights than any other airline to/from Israel. EL AL currently flies to 36 destinations from Israel and serves hundreds of other cities throughout the world via codeshare and interline partnerships with many other carriers. EL AL offers a full Boeing fleet and began its renewal in September 2017 with the arrival of the first of sixteen 787 Dreamliner aircraft. In 2018, EL AL flew over 5.6 million passengers. EL AL embodies Israel’s values of innovation and caring and is known for its genuine Israeli hospitality.

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