Air France and KLM Airlines renewed their joint €1.1 billion ($1.27 billion) revolving credit facility with a syndicate of 18 banks.

The facility was originally executed in April 2015, and the first tranche was due to mature in April 2018. The new credit facility is divided in two tranches of €550 million ($637 million) each, one for an initial period of three years (with two one year extension options) and one for a duration of five years.

The syndicate comprises 18 banks, including seven from France (BNP Paribas, Caisse d’Epargne Auvergne Limousin, CA CIB, Crédit Industriel et Commercial, Banque Fédérative Crédit Mutuel, Natixis and Société Générale), one from the UK (HSBC France), two from Germany (Deutsche Bank and Commerzbank), three from the U.S. (Citi, Goldman Sachs and Morgan Stanley), two from Spain (Banco Santander and Banco Sabadell), two from Italy (Monte Paschi Banque SA Paris and Banca Monte Paschi Belgio SA) and one from China (Bank of China).

Natixis has coordinated the transaction as documentation agent and will still act as facility agent.

The early refinancing of their credit facility enables Air France-KLM and Air France to take advantage of favorable market conditions and to continue benefiting from a flexible financing tool to optimize their cash management.