EXIM Approves $832.5 Million in Financing to Support U.S.-Manufactured Commercial Aircraft Exports to Turkish Airlines
July 30, 2021
(Ex-Im Bank)
Transactions Support 4,500 American Jobs in
Aerospace Industry Affected by COVID-19
Pandemic
WASHINGTON – Yesterday, the Board of
Directors of the Export-Import Bank of the
United States (EXIM) approved two transactions
totaling $832.5 million in loan guarantees to
support exports of U.S.-manufactured Boeing
787-9 aircraft, B737 MAX 8 aircraft and B737
MAX 9 aircraft, respectively, to Turkish
Airlines in Istanbul. EXIM’s loan guarantees
are estimated to support an estimated 4,500
American aerospace jobs at The Boeing
Company’s manufacturing facilities in
Washington State and South Carolina, and at
Boeing’s suppliers throughout the United
States.
The board vote followed the referral of the
transactions for a 35-day congressional review
period that began on June 24 and expired on
July 29. Notification of the transactions was
also posted on the Federal Register for a
period ending July 19. Comments received in
response to the Federal Register notice from
the National Association of Manufacturers (NAM)
and a Boeing supplier, Kildeer Mountain
Manufacturing, in Kildeer, North Dakota,
strongly endorsed EXIM’s support for the
exports to Turkish Airlines. The North Dakota
small business supplier noted that the company
provides nearly 300 jobs in three North Dakota
towns: Kildeer, Dickinson, and Hettinger.
NAM’s Director of Trade Facilitation Policy
Ali Aafedt noted in a letter to EXIM, “As the
aerospace industry emerges from the
difficulties brought on by the COVID-19
pandemic, EXIM Bank’s support, where
necessary, remains more important than
ever.”
“EXIM’s support for these aircraft exports
to Turkish Airlines is especially needed at
this time because of the significant financial
impact of COVID-19 pandemic worldwide. These
transactions will support thousands of American
jobs throughout the aircraft manufacturing
supply chains and aid in this industry’s
recovery,” said Acting President and Chairman
James Burrows.
“EXIM has more than 20 years of experience
with Turkish Airlines. These are solid
transactions at a critical time, and they
provide a reasonable assurance of repayment,”
said EXIM Acting First Vice President and Vice
Chairman James C. Cruse. He also cited the
benefits of anticipated risk-sharing with other
export credit agencies on one transaction.
Currently, EXIM is pursuing co-financing/risk
sharing with Japan’s export credit agency,
NEXI, and Italy’s SACE for the B787-9
aircraft transaction in order to reduce
EXIM’s net exposure.
“The EXIM Board’s actions fill a gap by
providing financing in a challenging market and
in difficult economic conditions,” said EXIM
Board member and former Congressman Spencer
Bachus. “In addition, over 4,500 jobs across
the country are supported by this transaction,
including positions in numerous small
businesses in the supply chain.”
For the first transaction, Natixis S.A., is
arranging an asset-backed lease for the B787-9
aircraft. Natixis, BPCE (parent company of
Natixis), and JP Morgan Chase in Germany will
serve as the guaranteed lenders. For the second
transaction, BNP Paribas is arranging an
asset-backed lease for the B737 MAX 8 aircraft
and B737 MAX 9 aircraft. BNP Paribas, Citibank,
Bank of America, and Caixabank will serve as
guaranteed lenders. All aircraft are expected
to be delivered by the end of 2021.
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