Aviation finance—typical ECA financing structures and documentation
Produced in partnership with Norton Rose Fulbright
Aviation finance—typical ECA financing structures and documentation

The following Banking & Finance guidance note Produced in partnership with Norton Rose Fulbright provides comprehensive and up to date legal information covering:

  • Aviation finance—typical ECA financing structures and documentation
  • Typical ECA financing structures in aviation finance
  • ECA security package
  • ECA documentation requirements
  • Due diligence—using jurisdictional questionnaires

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This will have an impact on the information in this Practice Note about the Cape Town Convention. For details, see Practice Note: Brexit—impact on finance transactions—Key issues for aviation finance.

Aircraft in commercial operation may be financed from several sources, including support from governmental or quasi-governmental entities known as export credit agencies (ECAs). ECA support has several advantages. In times of financial crisis, the proportion of aviation finance transactions involving ECA support usually increases.

There are some significant differences between the transaction structures and documentation for ECA supported aviation finance transactions and non-ECA supported deals.

See also Practice Note: Aviation