Advising Philippine Airlines on its first UKEF-backed engine financing in 12 years

We have advised Philippine Airlines (PAL) as Cayman Islands counsel on the financing of a Rolls-Royce Trent XWB-97 engine in the export credit market. The transaction involved a 12-year facility arranged by Citi, with the loan guaranteed by UK Export Finance (UKEF).
 
This financing marks PAL's first ECA-backed transaction in more than 12 years and supports the carrier's fleet modernisation plans. The Trent XWB-97 engine will power PAL's incoming Airbus A350-1000 aircraft, of which the airline has nine on order.

The Walkers team, led by Finance partner Kristen Kwok and supported by senior counsel Gareth Lond, advised on all Cayman Islands law aspects of the transaction. The Walkers Professional Services team provided fiduciary services led by Gennie Bigord, Margot O'Carroll and Kathleen Ramos, supported by Natalia Knapik and Arvin Salada. The team worked closely with lead counsel A&O Shearman throughout the transaction.
 
Kristen Kwok commented: "This transaction is a great example of cross-border collaboration and innovative financing in the aviation sector."
 
Gareth Lond added: "We are proud to support Philippine Airlines on this milestone in their fleet modernisation programme."