The mandated lead arrangers HSBC, KBC Bank NV and KfW IPEX-Bank closed the first disbursement under a term loan facility amounting to EUR 272m for Eurocontrol on 30 June 2020. Eurocontrol, the European Organisation for the Safety of Air Navigation, is an intergovernmental organisation headquartered in Brussels. It was founded in 1963 and has 41 member states consisting of all European Union member states and neighbouring countries. On behalf of its member states Eurocontrol amongst other things is entrusted to invoice and collect route charges from airspace users such as airlines.

The Eurocontrol member states approved signing of a term loan facility to support the continuous operation of safe and effective air navigation services in the European network as part of a Covid-19 financial relief package. This term loan with a tenor until end of March 2022 aims to mitigate the financial impact of the COVID-19 crisis in a number of Eurocontrol’s member states resulting from the decline in air traffic and the deferral of payment of route charges. The term loan facility enabled Eurocontrol to make optional financial liquidity available to these member states and their air navigation service providers.

KfW IPEX-Bank has acted as coordination and structuring agent and KBC Bank NV has acted as facility agent. As counsel Baker McKenzie Brussels advised the borrower while White & Case London and Brussels advised the mandated lead arrangers.