Aeroflot optimizes the financial leasing payments

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Aeroflot optimizes the financial leasing payments

Aeroflot – Russian Airlines has managed to decrease the financial leasing costs during the period of three years in the network of debt portfolio management, the airline reports. AEX.ru

This has been achieved by making a deal with Citybank on transfer of floating rate equal to LIBOR3M, which is being used for calculation of financial leasing payments, into a fixed one.

The rate has been fixed at 0,865% for the period of three years for financial leasing portfolio of $570 million. In case of actual value of LIBOR3M exceeds the fixed rate all the additional airline’s financial leasing costs will be indemnified by the bank.

In case of LIBOR3M increase to the levels close to the maximum ones for the past three years, Aeroflot may evade the additional costs connected with financial leasing payments, to the amount of $35 million.