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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