for the Russian airline Aeroflot.

The first significant transaction for a Russian borrower in loan markets this year had a consortium of international banks as the lenders.

And the bankers warned that the success of the Aeroflot loan, which is to be used to pay for ten new Boeing 737 aircraft, did not mean the market was opening to other Russian borrowers, after several deals were postponed earlier in the year.

The Financial Times reported the Aeroflot loan was tightly structured so that ownership and registration of the aircraft -- the security for the funds -- are with a special purpose vehicle here in Bermuda.

The deal was arranged by Chase Bank and the syndicate includes German, Austrian, Dutch, French, US and Japanese banks.

AIRLINE FLY