Apollo invests in Air France operating affiliate in bespoke deal

Air France will utilise the bespoke asset-backed transaction to deleverage and improve borrowing costs.

  • Apollo will make a €500 million investment into an Air France operating affiliate that owns a pool of spare engines
  • Proceeds from the deal will allow Air France-KLM and Air France to further redeem the French state perpetual bonds provided as aid during the covid outbreak
  • Apollo leveraged asset-backed finance and multi-asset credit to execute the investment

Apollo announced on 29 July that is has completed a €500 million investment into an operating affiliate of Air France that owns a pool of spare engines dedicated to Air France’s engineering and maintenance activities.

The bespoke transaction will allow Air France and Air France-KLM, of which Air France is a wholly owned subsidiary, to further redeem the perpetual bonds the French state provided the firms during the covid outbreak. They will utilise the bespoke asset-backed transaction to deleverage and improve borrowing costs. Apollo leveraged asset-backed finance and multi-asset credit to complete the long-term investment.

“Apollo is pleased to serve as a long-term strategic capital partner to Air France-KLM and is uniquely positioned to provide custom capital solutions like this to some of the world’s leading companies,” said Jamshid Ehsani, partner at Apollo. “Our ability to structure creative, scaled solutions at a wide-range of capital costs differentiates us from other platforms and provides attractive investment opportunities for both affiliated and third-party insurers as well as other institutional clients.”