Ex-Im Backs Bonds Issued by Ethiopian Airlines for Export of U.S. Aircraft
November 30, 2012
(Ex-Im Bank)
Washington, D.C. – The Export-Import Bank of
the United States (Ex-Im Bank) is backing bonds
issued by Ethiopian Airlines of Addis Ababa to
finance the export of four of ten Boeing 787
Dreamliner aircraft to Ethiopia.
Ethiopian Airlines obtained competitive
interest rates on its bonds.
“This good news illustrates that the capital
markets are yet another funding source
available to facilitate U.S. exports and
support American jobs,” said Ex-Im Bank
Chairman and President Fred P. Hochberg. “We
are proud that Ethiopian Airlines, one of our
longstanding partners, has benefitted from this
new financing program, and we hope that it will
be the first of many African buyers of
U.S.-manufactured goods and services to do
so.”
“The combination of high-quality,
high-technology U.S.-manufactured Boeing
aircraft, along with Ethiopian Airlines’
business model and management team and Ex-Im
Bank-supported financing, is enabling Ethiopian
Airlines to successfully connect Africa and its
people and products to the world,” added Bob
Morin, Ex-Im Bank’s vice president for
transportation.
Ex-Im Bank authorized the final commitment for
the purchase of the Dreamliners in May, and Boeing
delivered the first aircraft to Ethiopian
Airlines at a ribbon-cutting ceremony in
the main terminal of Washington Dulles
International Airport here August 15. Nippon
Export and Investment Insurance (NEXI)
co-financed the transaction.
The Boeing 787 aircraft delivered to Ethiopian
Airlines is the first of its kind to be
delivered to any airline outside of Japan, and
it is the first one to be financed by Ex-Im
Bank.
“We are lucky enough to secure such lowest
coupons at our first entry into this market. It
is a result of good understanding, dedication
and effort among Ethiopian Airlines and our
partners, Ex-Im Bank and JPMorgan,” said Kassim
Geresu, Ethiopian Airlines’ chief financial
officer. “We were all closely working together
over several months to close the financing deal
and achieve such attractive rates. I thank all
involved from ET, JPMorgan and Ex-Im Bank for
such fruitful work. As part of our cost leader
ship strategy and the ongoing efforts to make
our airline competitive and cost efficient, it
is my belief that the bond financing
arrangement is also contributing to take us to
a better position.”
Ex-Im Bank has worked with Ethiopian Airlines
since 2002 to support its ongoing fleet renewal
and expansion program.
In FY 2012, Ex-Im Bank authorized a record
$1.52 billion to support U.S. export sales to
buyers in Sub-Saharan Africa.
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