Finnair to refinance existing debt via aircraft sale and leaseback

By Rebecca Melvin

Concord, N.H., Sept. 28 – Finnair plc plans to refinance existing debt and retire an undrawn €175 million revolving credit facility with $400 million of proceeds from an aircraft sale and leaseback arrangement, according to a company release.

The company is implementing the sale and leaseback plan for four Airbus A350 aircraft. It sold these aircraft – delivered between June 2017 and February 2019 – and has leased them back for its own operation.

The refinancing plan is aimed at helping the company emerge from the Covid-19 pandemic.

The company had ordered a total of 19 new A350-900 XWB aircraft from Airbus, of which 16 have been delivered. The remaining three A350 aircraft are expected to be delivered in the second quarter of 2022, the fourth quarter of 2024 and the first quarter of 2025.

The carrier is based in Vantaa, Finland.

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