Dubai: Turkey’s national carrier, Turkish Airlines, secured financing for two of its Airbus A321neos with a multicurrency Japanese Operating Lease with Call Option (JOLCO) structure containing a sustainability-like loan facility.
The airline said in a statement on Friday that it secured the jets by achieving one of the lowest financing costs in the industry with its award-winning financing models.
JOLCO is an operating lease that gives the lessee an option to purchase the asset at the end of the lease or at some point during the lease period at the purchase price determined at the commencement of the lease.
Structured by Societe Generale, the facility is linked to the flag carrier’s Sustainability Performance Targets (SPTs) achievements, including its Key Performance Indicator (KPI) of reducing its fleet's carbon intensity.
Murat Şeker, Turkish Airlines’ Member of the Board and the Executive Committee, and Chief Financial Officer (CFO) said, “As an airline, awarded by World Finance as the 'Most Sustainable Flag Carrier Airline' for three years in a row, we are glad to integrate our sustainability endeavours into aircraft finance, an area where awards from world-renowned orecognisedns consistently recognize our sorganisationsadded, “We are confident that this integration will foster our sustainable growth and fleet renewal strategy while contributing to our goal of becoming a carbon-neutral airline by 2050.”
The airline said its aircraft financing team has achieved some of the lowest costs in the industry and received numerous awards from leading organizorganisationslobal Transport Finance and Airfinance Journal. Over the past decade, the airline has won over 30 international finance awards for innovative models, securing around $16 billion in financing.
