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Vedder Thinking | News Vedder Price Advises Initial Purchasers on British Airways $553.610 Million First Sustainability-Linked EETC

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Vedder Price advised the initial purchasers on the offering of $553.610 million of British Airways Pass Through Certificates, Series 2021-1 in two classes. The proceeds of the EETC and related JOLCO financing will be used to purchase 3 new Airbus A320neo aircraft, 1 new Airbus A350-1000 aircraft and 3 new Boeing 787-10 aircraft.

This is the first EETC ever to use a sustainability-linked structure.  The Equipment Notes will be subject to a key performance indicator in respect of the flight fuel efficiency of British Airways and its subsidiaries measured by the average grammes of gross carbon dioxide emitted per equivalent passenger per kilometre (gCO2/pkm) of flights during 2025.

The Vedder Price team was led by Jeffrey T. Veber, Vice Chair of the firm’s Executive Committee member of the firm’s Board of Directors, Kevin A. MacLeod, Head of the New York Capital Markets Group, and Global Transportation Finance Shareholders Clay C. Thomas and Neil Poland, with support from Tax Shareholder Matthew P. Larvick, International Trade & Compliance Shareholder Elizabeth G. Silver, Capital Markets Group Counsel Christopher G. Barrett and Global Transportation Finance Associates John Pearson, Majk Kamami, Daniel L. Spivey and Kaiden Basi.

“We are thrilled to be a part of the first sustainability-linked EETC and British Airways’ transition toward a low carbon business model. We are proud to have advised the initial purchasers in this transaction in the U.S. market and to further solidify our Global Transportation Finance Group’s environmental focus,” said Jeffrey T. Veber, Vice Chair of the firm’s Executive Committee, member of the firm’s Board of Directors and Global Transportation Finance Shareholder.

“We are excited to partner with our clients in developing innovative financial solutions targeting environmental sustainability.  Moreover, our firm is proud to support British Airways’ push toward the IAG Group’s commitment of net zero carbon dioxide emissions by 2050,” added Kevin A. MacLeod, Shareholder and Head of the New York Capital Markets Group.

The Certificates have not been and will not be registered under the U.S. Securities Act of 1933, as amended (Securities Act), or the securities laws of any jurisdiction. The Certificates were offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the United States to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act.



Professionals



Matthew P. Larvick

Shareholder



Kevin A. MacLeod

Shareholder



Neil Poland

Partner



Elizabeth G. Silver

Shareholder



Clay C. Thomas

Shareholder



Jeffrey T. Veber

Shareholder



Kaiden Basi

Solicitor



Majk Kamami

Associate



John Pearson

Solicitor



Daniel L. Spivey

Associate