LATAM Airlines lands $200M debt facility to fund 25 new Airbus jets

What's the deal? LATAM AirlinesDealroom has a profile for this one. Try Dealroom → has closed US$129.4M Pre-Delivery Payment (PDP) financing arranged by Santander Corporate & Investment BankingDealroom has a profile for this one. Try Dealroom → (Santander CIB). The facility will cover the advance payments required for 23 new Airbus A320neo and A321neo aircraft.

What's the endgame? The money funds deposits due during manufacturing and delivery, letting LATAM press ahead with its fleet renewal. The next-generation Airbus jets are central to the carrier's modernisation plan.

Who did what? Santander CIB acted as global coordinator and bookrunner, mandated lead arranger, co-structuring agent, facility agent, and security agent. The bank called the deal a relevant milestone for both sides, citing a long-standing commercial relationship.

Why now? PDP financing lets airlines spread the cost of large aircraft orders before the planes arrive, easing cash pressure during a multi-year delivery cycle. For LATAM, it keeps a sizeable order flowing without tying up capital upfront.

The signal: The deal underscores how banks are structuring complex aviation financing to back carriers' investment plans, and it points to continued fleet expansion across Latin America's largest airline group.

Read more: Capital Riesgo

Image credit: Thomas Naas Photography