Natixis CIB Secures Financing for LATAM Airlines' Airbus Fleet Expansion

Natixis Corporate & Investment Banking (Natixis CIB) has achieved a significant milestone by successfully underwriting a Senior Secured Term Loan designated for LATAM Airlines Group S.A. (LATAM) to finance the acquisition of eleven Airbus A321 Ceos aircraft. This accomplishment underlines Natixis CIB's dedication to supporting the aviation sector and the strategic growth of leading airline operators in Latin America.

As the largest airline group in Latin America, LATAM Airlines operates an extensive domestic and international network. Headquartered in Santiago, Chile, the airline services various routes across the continent, ensuring comprehensive passenger and cargo transport. LATAM operates a vast and diversified fleet comprised of over 350 aircraft, enhancing its capabilities across multiple countries, including Brazil, Colombia, Ecuador, Paraguay, and Peru.

In this transaction, Natixis CIB acted as the Joint Mandated Lead Arranger and Lender alongside SMBC, aiming to provide a dedicated Senior Secured Commercial Loan for the acquisition of the new aircraft. This partnership exemplifies a collaborative effort to meet the financing needs of a major airline in a dynamic industry, particularly as it navigates the complexities of fleet expansion and modernization.

Andres del Valle, the Director of Corporate Finance at LATAM, expressed satisfaction regarding the financing arrangement. He noted, “This transaction aligns perfectly with our proactive approach to debt and fleet financing. We are pleased to partner with Natixis and SMBC on the successful refinancing of these Airbus A321 Ceos. Our goal is to optimize our capital structure and enhance liquidity, ensuring long-term access to efficient and competitive funding for our aircraft assets. We sincerely appreciate the continued trust and support from our financial partners as we work toward our growth and transformation objectives.”

This recent financing initiative demonstrates Natixis CIB's strategic focus on facilitating the aviation sector's development and supporting airlines in terms of fleet acquisition and financial sustainability. Yevgeniya Levitin, Head of Aviation Americas at Natixis CIB, remarked, “We are delighted to continue our support for LATAM Airlines' fleet financing needs and sustained growth with the successful refinancing of 11 A321 Ceos. We greatly value LATAM's trust in our institution and look forward to further strengthening this successful relationship.”

By backing this financing endeavor, Natixis CIB reinforces its commitment to aligning with sustainable and efficient business practices, aiming to achieve carbon neutrality by 2050 while enabling clients to mitigate their environmental impact.

Natixis Corporate & Investment Banking is recognized globally as a leading financial institution. It provides a comprehensive range of services, including advisory, investment banking, financing, corporate banking, and capital markets solutions tailored to corporations, financial institutions, and sovereign entities worldwide. With a team of experts positioned across about 30 countries, Natixis CIB aids clients in strategic development, helping them transform their businesses and maximize their positive impact on the economy.

As a subsidiary of Groupe BPCE, the second-largest banking group in France, Natixis CIB benefits from robust financial backing and solid financial ratings from major credit agencies. This positions Natixis CIB favorably in the global market, allowing it to provide effective capital solutions to customers engaged in diverse industries, including aviation.

In summary, the partnership between Natixis CIB and LATAM Airlines illustrates the shared vision for growth and innovation in the aviation sector. Their collaborative approach will play a crucial role in enhancing LATAM Airlines' operational efficiency and market competitiveness, especially in an era dominated by rapidly evolving technological advancements and shifting consumer expectations in air travel.

Conclusion

Natixis CIB's successful financing of LATAM Airlines offers a promising outlook for the future of aviation in Latin America. As companies like LATAM continue to adapt to market demands through strategic investments in their fleet, the impact of such financial partnerships will undeniably contribute to the growth and resilience of the aviation industry in the region.