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BA, owned by International Consolidated Airlines Group, came to the market on Tuesday with an enhanced equipment trust certificate (EETC) deal, a form of securitization, backed by seven new technology aircraft deliveries.
British Airways Pass Through Trust 2021-1A issued $461m of 14 year Class A notes rated A2/A, paying 2.9%. Its sister trust labelled 2021-1B sold $91m of 10 year B notes rated Baa2/BBB at 3.9%.
The coupons will rise by 25bp if BA fails to reach an emissions target of 88.3g of CO2 per passenger kilometre flown during its 2025 financial year, according to a filing.
“The green appellation is a first for aircraft financing, and what we have long thought should logically accompany all new technology aircraft deals...