Norwegian Air Shuttle ASA — M&A Activity 2019

Oct 24, 2019

Norwegian Air Shuttle ASA to establish a joint venture with CCB Leasing (International) Corporation DAC

Norwegian Air Shuttle ASA to establish a joint venture with CCB Leasing (International) Corporation DAC

Norwegian Air Shuttle ASA («Norwegian») is pleased to announce the formation of a new joint venture («JV») with CCB Leasing (International) Corporation DAC («CCBLI»). CCBLI is a wholly owned subsidiary of China Construction Bank Corporation (CCB), an industry leader in banking, financial services and leasing, and the world’s second largest bank by asset value. CCBLI will be the majority owner of the JV with a 70 % share, with Norwegian, through its wholly owned subsidiary Arctic Aviation Assets DAC (“Arctic”), holding the remaining 30 %.

The purpose of the JV will be to finance, own and lease aircraft which are part of Norwegian’s Aircraft orderbook. Under the terms of the agreement, the JV will purchase from Arctic an initial 27 Airbus A320 NEO aircraft to be delivered from 2020 to 2023. Aircraft deliveries into the JV will start from Q1 2020. CCBLI has committed to provide senior debt financing to the JV for all of the 27.

In addition to a positive equity effect, the JV will reduce Norwegian’s committed capital expenditure by approximately USD 1.5 billion based on the initial 27 aircraft.

“Following several months of negotiations, I’m very pleased to announce that we have reached an agreement with CCBLI to establish a joint venture for an initial 27 Airbus A320 NEO aircraft. This agreement will contribute significantly to reducing our current and future capital expenditure. The JV is one of many important initiatives that need to be realized in order for us to deliver on our strategy of moving from growth to profitability,” said Acting CEO Geir Karlsen of Norwegian.

“I am convinced that CCBLI with its professionalism, financial strength and capabilities will be an excellent partner for Norwegian into the future. This JV is an important first step in building a strong strategic partnership between our two companies.” Karlsen added.

We have developed a good relationship with Norwegian over the past year, including two executed transactions, and we are very much looking forward to continue to build on this relationship by forming the JV, said Kevin MI, Head of Aviation, CCBLI.

Fornebu, 24 October 2019

Norwegian Air Shuttle ASA

For further information, please contact:

Tore Østby, EVP Strategic Planning and IR, tel +47 99546400