British Airways

British Airways - UKEF Covered Loan

Borrower (s)
British Airways
Industry
Transport/Aircraft
Area of finance
Export & Agency Finance
Region
Europe
Countries
United Kingdom

Deal Overview

British Airways has secured a five-year term-loan Export Development Guarantee Facility of £2.0 billion underwritten by a syndicate of banks, partially guaranteed by UK Export Finance. The proceeds from the UKEF facility will be used to enhance liquidity and provide British Airways with...

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British Airways has secured a five-year term-loan Export Development Guarantee Facility of £2.0 billion underwritten by a syndicate of banks, partially guaranteed by UK Export Finance. 

The proceeds from the UKEF facility will be used to enhance liquidity and provide British Airways with the operational and strategic flexibility to take advantage of a partial recovery in demand for air travel in 2021 as Covid-19 vaccines are distributed worldwide.


UKEF "Our export development guarantee (EDG) for British Airways has strong sustainability conditions attached. It was our first ever sustainability-linked EDG. HSBC and UKEF are tracking their performance on aircraft fuel efficiency and ensuring they are fully aligned with the company's sustainability strategy and transition pathway to net zero by 2050 as part of the EDGs. As part of this, the EDG come with sustainability conditions, whereby BA get more favourable terms if they perform well against sustainability targets, and are penalised if they do not. We therefore think this qualifies for GL6: Clean transportation"


Audrey-->Noted the comments from the Bank and ECA - Assuming the fuel efficient enables a reduction of emissions compared to the normal course of business. In this case, can be considered as Sustainable

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Deal Volume
$2.8bn
Financial Close
21 February 2021
Sources
Submitted by participant(s), Press release

All Dealmakers

Youngsik Ahn

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Ricky Shah

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Sandra Mostaza

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Chris Cook

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