• The structure relies on asset-based security and a local bank wrapper to mitigate airline risk.
• Regional operators, such as Air Ghana, are already gearing up for growth.
• Scaling the model requires legal improvements, Foreign exchange risk management, and replicable underwriting standards.

In early October 2025, TLG Capital and Wema Bank sealed a $10 million facility for Falcon Aero’s VivaJets arm, the first internationally structured debt for a Nigerian airline.  Unlike a typical corporate loan, this deal incorporates structural protections to keep much of the debt “off” the airline’s main balance sheet, while still providing VivaJets with capital to refinance legacy obligations and expand operations.

Many African carriers are struggling to access long-term USD credit locally, as local banks are constrained in taking on residual and enforcement risk. Airlines generate most of their revenue in local currencies, while most of their expenses are in hard currencies. ACC Aviation reports that airlines are increasingly combining leasebacks, structured debt, and equity solutions to manage cash flow constraints and capital growth needs.

The VivaJets structure combines a local banking partner (Wema) with a private credit fund (TLG) to split risks: the local bank handles on-the-ground underwriting, compliance, and monitoring, while the fund brings in USD capital and brings a structuring discipline. This “hybrid” model mitigates hurdles that pure foreign lenders often refuse to touch (jurisdictional, regulatory, and enforcement).

By isolating the financing in a special purpose vehicle (SPV) or ring-fenced structure, the airline is less exposed to operational volatility, and the lender gains stronger recourse to pledged assets or cash flows. (While public reporting has not disclosed full covenants, the parties’ statements suggest a “structured-solutions mindset” was key. )

Regional operators are already signaling their readiness.

In Ghana, Air Ghana (currently a cargo carrier) is preparing to enter passenger operations by late 2025 and has begun recruiting in ticketing, sales, and call centre functions.  Given that step, a capital structure like the VivaJets model might prove attractive.

Additionally, Ghana is actively negotiating the revival of a national airline, including technical partnerships (e.g., with TAP Portugal) to manage financial and operational risks.  In Côte d’Ivoire and Senegal, national carriers are expanding their fleet plans, and smaller charter or regional operators could adopt structured debt solutions to reduce their reliance solely on multilateral lenders or OEM financing. For instance, Absa recently underwrote a structured aircraft finance facility through Jetcraft Commercial, illustrating that African banks are already engaging in structured aviation deals.

In 2024, African private capital fundraising more than doubled to US$4.0 billion, marking the third-highest annual total in the past decade. Infrastructure and private equity funds each accounted for roughly 30 percent of that capital.  Meanwhile, passenger traffic for African carriers is projected to increase from 98 million in 2024 to 113 million in 2025, a 15.3% rise.  With airlines already offering 12.6 percent more seats in some months of 2024 compared to pre-COVID-2019 levels, the VivaJets financing arrives at a moment when demand, capacity, and investor interest are all aligning.

By Cynthia Ebot Takang