SyCipLaw advises US Eximbank on 1st B777 aircraft to the Philippines

October 29,2012

SyCip Salazar Hernandez & Gatmaitan (SyCipLaw) acted as Philippine counsel to Export-Import Bank of the United States (US Eximbank) on the financing for the acquisition by flag carrier Philippine Airlines (PAL) of a brand new B777-300ER.

The transaction structure took the form of a finance lease, with a special purpose vehicle and trust arrangements created to qualify the transaction for export financing from the US Eximbank.

The aircraft has a value of approximately US$130 million and is the first B777 aircraft delivered to the Philippines. It was immediately put into service for its first assignment to Australia upon delivery in June. A second B777 is expected to be delivered within November.

PAL, the national flag carrier of the Philippines, is presently co-owned by San Miguel Corporation and the Lucio Tan Group of Companies. These two companies have interests in the food and beverage, real estate and properties, liquor, tobacco, aviation, banking, power and energy, and telecommunications sectors, among others.

The SyCipLaw team consisted of partner Mia G. Gentugaya , and associates Bhong Paulo A. Macasaet and Emmar Benjoe B. Panahon.