Hogan Lovells advises on the first green financing of a commercial aircraft

Press releases | 20 December 2019

Hogan Lovells advised Deutsche Bank on the financing of three low-carbon emission ATR 72-600 aircraft, built by aircraft manufacturer ATR. The aircraft, the first of which was delivered on 19 December, are being leased to Swedish regional airline Braathens Regional Airlines (BRA) by Singapore-based leasing company Avation.

Once the order is completed in early 2020, the airline will operate an entire fleet of ATR 72-600s, helping the airline meet its commitment to reducing its environmental impact. BRA expect to emit 7,500 fewer tonnes of CO2 per aircraft per year as a result.

Vigeo Eiris, an independent agency providing Environmental, Social and Governance ratings, expressed the opinion that the project of replacing ageing regional jets with new ATR 72-600 aircraft is aligned with the Green Loan Principles established by the Loan Market Association in 2018.

Commenting, lead partner Matthew Leigh said: “We are delighted to have advised Deutsche Bank on the first ever green financing of a commercial aircraft. Aviation is perceived as a major contributor to climate change and we are proud to have supported the efforts of the industry to reduce the environmental impact of flying.”

The Hogan Lovells team was led by Matthew Leigh supported by Terry Chang, Russell Green, Aik Hui Chua and Margaux Ith.

A separate Hogan Lovells team led by Andy Ferris and supported by Daniel Mok also advised Wilmington Trust in its role as agent and security trustee on the deal.