Hogan Lovells advised African Export-Import Bank (Afrexim) as mandated lead arranger and lender in relation to the pre-delivery and delivery financing for Kenya Airways Limited of ten Embraer E-190 aircraft and the pre-delivery financing of nine Boeing 787 aircraft and one Boeing 777 aircraft.
The pre-delivery and delivery financing for the Embraer aircraft, signed on 28 August 2012, with Kenya Airways taking delivery of the Embraer aircraft at regular intervals through to November 2013. The pre-delivery financing for the Boeing aircraft signed on 2 November 2012. The mandate for the ultimate delivery financing of the ten Boeing aircraft brings the total deal value to approximately $2 billion.
Afrexim also acted as Junior Agent and Security Agent, with Standard Chartered Bank acting as Senior Agent.
The Hogan Lovells team advising Afrexim was led by London finance partner Robin Hallam, supported by Of Counsel Shalini Bhuchar.
Commenting on the transaction, Robin said:
“This financing transaction was significant for the client, the airline and the sector; providing certainty of funding for the airline’s 10 year fleet plan and an “African” solution”.
Hogan Lovells has previously advised Afrexim on a number of transactions, including as mandated lead arranger of a US$130 million syndicated telecommunications equipment import facility for Econet Wireless Global, Mauritius; as Security Trustee and Global Coordinator of a US$362 million collateral sharing agreement; and as lender on the bridge and US_Exim guaranteed financing of two Boeing 737-800 aircraft for Arik Air.
