Korean Air gets first loan using new insurance tool
Korean Air has received 10-year, €143mn loan from ING to refinance a Boeing 747-8i passenger aircraft, in its first transaction covered by the newly-developed Aircraft Non-Payment Insurance (ANPI).
The insurance instrument was developed by Boeing and Marsh, in part as an alternative to US Exim guarantees, an ING spokesperson tells GTR.
The American ECA has been unable to authorise transactions of over US$10mn since Congress blocked the appointment of a final board member a year ago, leaving its largest beneficiary – Boeing – to look for other insurance solutions.
Insurers involved in the Korean Air transaction involve Allianz, Axis and Endurance. ING Capital in New York was the sole lead arranger, lender and agent. Milbank and Lee & Ko represented Korean Air, Clifford Chance represented the ANPI providers, and White & Case represented ING Capital.take me back