The $143,711,000 guaranteed floating rate notes are privately placed and due 2025 for Aeronautic Investments 18 Limited, an issuing vehicle set up within an aircraft financing structure for Transportation Partners. The bond is guaranteed by Coface and reinsured by SACE.

In 2014, Transportation Partners took delivery of 10 ATR 72-600 turboprop aircraft and leased them to PT Wings Abadi and Malindo Airways Sdn Bhd, according to a statement from BNP Paribas (BNPP), who acted as the sole lead manager for the transaction. The two airlines are part of Lion Group, an Indonesian airline company for which Transportation Partners acts as a captive lessor.

The financing was structured through 10 Coface-guaranteed loans arranged by BNP Paribas. The proceeds from the transaction were used to refinance those loans at a lower funding cost to Transportation Partners.

BNPP’s statement adds that this is Coface’s first guaranteed bond transaction for an Asian client. It also represents the world’s first-ever Coface-guaranteed bond transaction financing ATR aircraft.

The transaction involved a three-tiered aircraft leasing structure and an aircraft spare parts financing package, according to a statement from Allen & Overy, who advised BNPP on the deal.

The law firm said it has advised on all of the Coface-backed bonds in respect of aircraft that have been issued to date. This is the first of those bonds to be privately placed.