Avianca has closed Japanese operating lease with call option (JOLCO) financing for two Airbus A320neos, completing a transaction for three aircraft.
The A320neos (MSNs 7887 and 7928) were delivered to the Bogota-based carrier in December 2017, Avianca confirms and Flight Fleets Analyzer shows. They join a Boeing 787-8 (MSN 39407) that the airline financed with a JOLCO in October.
“This transaction opened an entirely new investor market for Avianca, and we are absolutely thrilled with the pricing, terms and results achieved by Burnham Sterling," says Lucia Avila, corporate finance director at Avianca, in a statement.
Burnham Sterling was sole financial and placement adviser to the airline on the three-aircraft deal.
Avila told FlightGlobal in November that Avianca had closed the 787 JOLCO and mandated Burnham Sterling to arrange financing for the two A320neos.
The more than $200 million JOLCO transaction finances 100% of the capital costs of the aircraft for Avianca and includes a fixed-price early buyout option at year 10, the adviser says.
JOLCOs have gained popularity in Latin America in recent years. Aeromexico closed its first JOLCO in 2016 and has since financed three aircraft with the structure.
Avianca is scheduled to take six aircraft in 2018, requiring about $519 million in capital expenditures, airline filings show.
Avila said in November that the airline was considering JOLCO and other options to finance its 2018 deliveries.
Source: Cirium Dashboard
