Hogan Lovells advises UK Export Finance

Hogan Lovells has advised the Export Credits Guarantee Department of the UK Government (UK Export Finance) on the capital markets aspects of a successful USD913 million Sukuk issuance for the acquisition of four Airbus A380-800 aircraft. This marks the world’s first UK Government supported Sukuk for aircraft financing.

The proceeds from the issuance of the Certificates, due 2025, will be used to fund the acquisition of four Airbus A380-800 aircraft, which are expected to be delivered in April, May, June and July 2015. The aircraft will be leased to and operated by Emirates.

The Hogan Lovells team advising ECGD was led by London capital markets partner James Doyle with assistance from Oliver West (associate, London). Rahail Ali (partner, Dubai) advised on Islamic structuring matters and Dennis Dillon (partner, London) advised on US securities law matters.Allen & Overy LLP (Mario Jacovides) advised UK Export Finance on the aircraft finance aspects of the issuance.

Commenting on the issuance, Doyle said,"This is an exciting transaction for our client UK Export Finance, and a world first. We have previously advised UK Export Finance on a number of capital markets financings to date but this marks a number of firsts – the world’s largest ever capital markets offering in the aviation sector with an Export Credits Agency (ECA) guarantee; the first time that a Sukuk has been used to pre-fund the acquisition of aircraft; and the first ever Sukuk financing for A380 aircraft.With our joint U.S. and English law capability and strong capital markets and asset finance practices, Hogan Lovells is ideally placed to advise on complex, market leading transactions of this nature."