K&L Gates Straits Law LLC Advises Avation PLC on First-Ever Green Financing of Commercial Aircraft
The first aircraft was delivered to Swedish regional airline leasee Braathens Regional Airlines (BRA) in December 2019. BRA operates a fleet of ATR 72-600, which it expects will enable it to reduce its CO2 emission by 7,500 fewer tons per aircraft per year as a result.
Avation PLC’s ability to secure certification from a third party, who verified that the loan satisfied sufficient environmental, social and governance (ESG) themes for it to be considered “green”, will improve Avation PLC’s ESG profile and help it attract more investors.
Avation PLC executive chairman Jeff Chatfield said: "As a lessor, it is essential for us to progress our fleet into new technology low carbon emission aircraft such as the ATR 72-600 which maintain their value over a long period."
Lead partner James Bradley commented: “We are delighted to have advised Avation PLC on the first-ever green financing of a commercial aircraft. In supporting Avation PLC, we are glad to be at the forefront of the aviation industry’s ambitions to reduce the environmental impact of flying.”
Supporting Bradley on the K&L Gates Straits Law LLC team that advised on the English law aspects of the deal were Hannah Davies, Caitlin Forsyth, and Natalia Toh, with a second K&L Gates Straits Law LLC team led by Ahmad Khalis and supported by Cheryl Lau and Nandana Marur advising on the Singapore law aspects of the deal.
K&L Gates is a fully integrated global law firm with lawyers located across five continents. The firm represents leading multinational corporations, growth and middle-market companies, capital markets participants and entrepreneurs in every major industry group as well as public sector entities, educational institutions, philanthropic organizations and individuals.