The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Eastern Europe's deal of the year?

The biggest debt deal of the year from eastern Europe wasn't the Yukos loan, or the Poland dollar deal, or even the Gazprom blowout. For once, the banks involved don't want to tell you how well it went, and it probably doesn't appear on any league table. That's because it's an arms financing deal, one of the biggest private financings of this type for several years.

In November 2002, Poland agreed to buy 48 F-16 jets from Lockheed Martin, through the US government's foreign military sales programme. The aircraft were to modernize Poland's ageing air force, in order to make a good contribution to Nato's combined forces, of which Poland is a relatively new member. In March 2003 the financing for the deal was finalized, with JPMorgan arranging a $5.5 billion facility, guaranteed by the US government, at an interest rate, according to one banker, of Libor plus 10 basis points. This was syndicated to several US and European banks in March, through a US special purpose vehicle, according to a banker who worked on the deal. JPMorgan did not return calls to comment.

Fortuitous repayment holiday

According to the term sheet, which Euromoney has seen, the deal was structured in two options - a $1.9

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree