Norton Rose Fulbright advises LATAM Airlines in US$505 million sustainability-linked aircraft financing

Global law firm Norton Rose Fulbright represented LATAM Airlines Group S.A. in connection with securing a US$505 million sustainability-linked senior secured A/B term loan to support the acquisition of 11 next-generation aircraft. The landmark transaction is part of the airline's ongoing fleet modernization effort and the sustainability-link ties the financing to LATAM's greenhouse gas emissions-reduction targets.

The aircraft portfolio includes one Airbus A320neo, four Airbus A321neo and six Embraer ERJ195-E2 planes, adding more fuel-efficient models to LATAM's fleet. The financing was structured in two tranches, with BNP Paribas arranging the Series A tranche and Jackson Square Aviation provided the Series B tranche.

"Coordinating a financing of this scale across multiple parties and jurisdictions is complex, and we were proud to work alongside LATAM to deliver a solution that supports the airline's long-term objectives," said Ryan Apar, who co-led Norton Rose Fulbright's representation.

Norton Rose Fulbright's team was led by Ryan Apar and Alyssa Vazquez and included Gaetano Taormina and Tonny Mugisha (New York). The firm has an award-winning global aviation practice, advising airlines, lessors, financial institutions and investors on cross-border aircraft transactions, financings and leasing arrangements.