WFW advises Standard Chartered and BOI on Air India US$215m aircraft financing

Watson Farley & Williams (“WFW”) advised Standard Chartered Bank (“Standard Chartered”) and the Bank of India, IFSC Banking unit (“BOI”), GIFT City, on the US$215m refinancing of six Boeing B777-300ER aircraft for Air India Limited (“Air India”).

Implementing an innovative structure, the first of its kind in India, this transaction marks the first time a financing for an Indian airline has been structured directly to a borrower in GIFT City, India’s emerging international financial hub, which has not been structured through Ireland.

Lending directly to AI Fleet Services IFSC Limited (“AI Fleet”) – Air India’s GIFT City-based subsidiary – demonstrates significant increase in market confidence and regulatory maturity in India. BOI’s involvement as lender establishes Indian domestic appetite for financing its aircraft and is evidence of the growing role of Indian domestic financial institutions are sure to play in India’s ambitions in aviation. This innovative structure not only streamlines execution but also facilitates Indian domestic participation in a more cost-effective structure.

Standard Chartered is a leading international banking group offering global financial services, whilst BOI is a major public sector bank in India providing a wide range of domestic and international banking solutions.

The cross-border WFW Aviation team that advised Standard Chartered and BOI was led by Singapore Asset and Structured Finance Partner Richard Williams, with outstanding support from Associates May Eng and Rheya Panjwani and Paralegal Lydia Ong. New York law advice was provided by Counsel Maxi Adamski-De Visser and Associate Chloe Sucato.

Richard commented: “The groundbreaking new structure used to complete this transaction sets a precedent for aviation finance for India. Lending directly to AI Fleet with the involvement of BOI represents a strong vote of confidence in Indian aviation and the recently developed regulatory framework in India. Advising on matters of this nature highlights WFW’s market leading footprint in Indian aviation finance.  Our thanks go to Standard Chartered, BOI, Air India and AI Fleet for their confidence in us and the other legal professional advisors, whose collaborative approach was essential in closing this transaction”.

Source: Watson Farley & Williams