Avation delivers first aircraft financed with a green loan

SINGAPORE: Avation PLC, the commercial passenger aircraft leasing company, has delivered the first in a series of five new ATR 72-600 turboprop aircraft to Braathens Regional Airways AB at the ATR facility in Toulouse, France.

Braathens represents Avation’s 18th airline customer. The Company has been advised that this is the first ever commercial aircraft financed with a Green Loan.  The green loan was provided by Deutsche Bank.

Vigeo Eiris, one of the world’s leading institutions for Environmental, Social and Governance ratings, has expressed an opinion that the project of replacing aging regional jets with new ATR 72-600 aircraft is aligned with the Loan Market Association’s Green Loan Principles guidelines 2018. In their opinion Vigeo Eiris stated “We express a reasonable assurance (our highest level of assurance) on the Borrower’s commitments and on the Loan’s contribution to sustainability.”

This reinforces the environmental benefits of the modern ATR turboprop aircraft, which emits 40% less CO2 than a comparable regional jet, largely due to its latest generation turboprop engines. ATR 72 aircraft currently comprise 26 aircraft out of Avation’s total fleet of 48 aircraft. Together with other fuel efficient and lower carbon aircraft in the fleet, they comprise over 50% of Avation’s overall fleet.

Executive Chairman of Avation, Jeff Chatfield, commented: “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. BRA’s decision to consolidate their own operation around the ATR 72-600 aircraft type demonstrates their understanding of the regional aviation market and the importance of reducing carbon emissions. BRA is an airline that is leading the way in terms of striving to offer their passengers the best possible experience, whilst optimising operations and minimising environmental impact.”

Mr Chatfield went further to say: “We anticipate financing cost improvements as a consequence of these Green Finance initiatives as the market develops. Avation will be ideally placed due to an improving credit rating outlook and its modern technology, new, fuel efficient and lower carbon aircraft fleet”.

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