Finnair Oyj — Capital/Financing Update 2021

Sep 28, 2021

Finnair moves forward with refinancing plan: sale and leaseback agreement for four A350 aircraft closed for cash proceeds in excess of 400 MUSD

Finnair moves forward with refinancing plan: sale and leaseback agreement for four A350 aircraft closed for cash proceeds in excess of 400 MUSD

Finnair Plc             Stock Exchange Release            28 September 2021 at
9.00 a.m. EEST

In conjunction with Finnair’s efforts to emerge from the corona crisis, the
company is proceeding with its refinancing plan and has finalised a sale and
leaseback arrangement for four of its Airbus A350 aircraft. In the arrangement,
Finnair sold these aircraft – delivered between June 2017 and February 2019 –
and has leased them back for its own operation. The operating lease period is,
on average, 12 years and the counterparties are GE Capital Aviation Services
(“GECAS”) and Pacific Investment Management Company LLC (“PIMCO”) as the
lessors; GECAS is the lease servicer.

The arrangement will not have a significant impact on Finnair’s operating result
for the third quarter of 2021; however, the immediate positive cash effect for
Finnair is in excess of 400 million US dollars. Finnair will use the cash to
refinance existing debt and retire its undrawn revolving credit facility of 175
million euros.

“This is the biggest single aircraft financing transaction in the history of our
company”, says Finnair’s CFO Mika Stirkkinen. “It is a significant part of our
refinancing plan, which we have executed diligently during the pandemic, and it
helps us to further improve our capital structure.”

Finnair has ordered a total of 19 new A350-900 XWB aircraft from Airbus, of
which 16 have been delivered. The remaining three A350 aircraft are expected to
be delivered in the second quarter of 2022, the fourth quarter of 2024 and the
first quarter of 2025.

The fleet operated and/or owned by Finnair is shown at the company website
at https://www.finnair.com/gb/gb/flights/fleet and updated on a quarterly basis
in the company’s financial reports.

FINNAIR PLC
Further information:
Finnair communications, 358 9 818 4020, comms@finnair.com

Distribution:
NASDAQ OMX Helsinki
Principal media

Finnair is a network airline, specialising in connecting passenger and cargo
traffic between Asia and Europe via the short northern route. Sustainability is
at the heart of everything we do –  Finnair intends to reduce its net emissions
by 50% by the end of 2025 from the 2019 baseline and achieve carbon neutrality
latest by the end of 2045. Finnair is a member of the oneworld alliance. Finnair
Plc’s shares are quoted on the Nasdaq Helsinki stock exchange.