White & Case has advised on Vietnam's first combined export credit agency supported aircraft finance transaction.

The US firm acted for Vietnam Airlines in the US$150m lease financing of three Airbus A321 with precedent-setting support from European ECAs. The principal transaction documents were signed on 25 May at a ceremony in London, just two weeks after the first documentation meeting.

Singapore-based partner and Vietnam practice head Minh Dang was part of a global White & Case team that included associate Mark Moody in Singapore, Paris-based partner Thomas McDonald and London-based associate Adrian Beasley.

Truong Nhat Quang, managing partner of White & Case Vietnamese affiliate firm YKVN, led a team providing local law advice.

ABN Amro acted as arranger and ECA guaranteed lender for 85% of the financing, with Natexis Banques Populaires the commercial lender. The three European ECAs that support Airbus are France's COFACE, the UK's ECGD, and Germany's Euler Hermes.

Dang said: "These transactions demonstrate both the maturation of aircraft financing in Vietnam and the emergence of ECA supported financing as an important option in the market."

McDonald added: "The European ECAs view this transaction as an opportunity to demonstrate their commitment to Southeast Asia. Moreover, this transaction represents one of the first where the European ECAs are providing harmonised guarantee support and, as a result, they actively participated in the documentation process. This direct contact between Vietnam Airlines and the ECAs fostered a good relationship that allowed issues to be discussed and resolved in an efficient manner."

The financing is part of Vietnam Airlines' continuing fleet expansion program and covers the first three aircraft under an agreement signed in October 2002 to obtain five A321s. The first aircraft delivery is expected in July.