General Announcement::Worlds first Green Loan for Aircraft

Issuer & Securities

Issuer/ Manager
AVATION CAPITAL S.A.
Securities
AVATIONCAP US$300M6.5%210515A - US05351CAA53 - 8ULB
AVATIONCAP US$300M6.5%210515R - USL56473AA67 - 8UMB
AVATIONCAP US$50M6.5%210515RT - USL56473AB41 - PHMB
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
19-Dec-2019 18:34:23
Status
New
Announcement Sub Title
Worlds first Green Loan for Aircraft
Announcement Reference
SG191219OTHRG12D
Submitted By (Co./ Ind. Name)
jeff chatfield
Designation
executive chairman
Effective Date and Time of the event
19/12/2019 17:00:00
Description (Please provide a detailed description of the event in the box below)
AVATION PLC
( AVAP or the Company )

AVATION DELIVERS FIRST AIRCRAFT FINANCED WITH A GREEN LOAN

SINGAPORE, 19 DECEMBER 2019 - Avation PLC, (LSE: AVAP), the commercial passenger aircraft leasing company, is pleased to announce that it has delivered the first in a series of five new ATR 72-600 turboprop aircraft to Braathens Regional Airways AB. ( Braathens , BRA ) at the ATR facility in Toulouse, France. Braathens represents Avation s 18th airline customer. The Company has been advised that this is the first ever commercial aircraft financed with a Green Loan. The green loan was provided by Deutsche Bank.

Vigeo Eiris, one of the world s leading institutions for Environmental, Social and Governance ratings, has expressed an opinion that the project of replacing aging regional jets with new ATR 72-600 aircraft is aligned with the Loan Market Association s Green Loan Principles guidelines 2018. In their opinion Vigeo Eiris stated We express a reasonable assurance (our highest level of assurance) on the Borrower s commitments and on the Loan s contribution to sustainability.

This reinforces the environmental benefits of the modern ATR turboprop aircraft, which emits 40% less CO2 than a comparable regional jet, largely due to its latest generation turboprop engines. ATR 72 aircraft currently comprise 26 aircraft out of Avation s total fleet of 48 aircraft. Together with other fuel efficient and lower carbon aircraft in the fleet, they comprise over 50% of Avation s overall fleet.

Executive Chairman of Avation, Jeff Chatfield, commented: As a lessor, it is essential for us to progress our fleet into new technology low carbon emission aircraft such as the ATR 72-600 which maintain their value over a long period. BRA s decision to consolidate their own operation around the ATR 72-600 aircraft type demonstrates their understanding of the regional aviation market and the importance of reducing carbon emissions. BRA is an airline that is leading the way in terms of striving to offer their passengers the best possible experience, whilst optimising operations and minimising environmental impact.

Mr Chatfield went further to say: We anticipate financing cost improvements as a consequence of these Green Finance initiatives as the market develops. Avation will be ideally placed due to an improving credit rating outlook and its modern technology, new, fuel efficient and lower carbon aircraft fleet .



ENDS

Enquiries:

Avation PLC Jeff Chatfield, Executive Chairman +65 6252 2077
Avation welcomes shareholder questions and comments and advises the email address is: investor@avation.net
Notes to Editors:
Avation PLC is an aircraft leasing company, headquartered in Singapore, owning and managing a fleet of commercial passenger aircraft which it leases to airlines around the world.
More information on Avation is available at www.avation.net.