THY secures yuan financing for new aircraft

ISTANBUL

Turkish Airlines (THY) has become the first airline outside the People's Republic of China to finance aircraft with Chinese yuan. 

According to a statement from the company, three Airbus A350 aircraft, which joined THY's fleet in May and July, were financed in Chinese Yuan through AVIC International Leasing and CCB Financial Leasing.

Professor Dr. Ahmet Bolat, chairman of THY's Board of Directors and Chief Executive Officer, said that the financing method was a first.

"As THY, we have added to our achievements in aircraft financing by becoming the first airline to finance aircraft outside of China in Chinese Yuan currency,” he said.

“By adding a fifth currency to the financing transactions where four different currencies are currently used, we aim to keep the financing costs of our partnership at the lowest level and support our hedging strategies against foreign exchange risk,” Bolat added.

“The interest and confidence of our Chinese business partners in this transaction, which has never been done outside of China, is also a sign of inter-institutional trust and cross-country cooperation. In the future, we will continue to be at the forefront of the market with new innovative financing methods.”