Ex-Im Backs Bonds Issued by Ethiopian Airlines for Export of U.S. Aircraft
Press Release
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.
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that creates and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (from Fiscal Year 2008), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to assist foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $35.8 billion in total authorizations in FY 2012 – an all-time Ex-Im record. This total includes more than $6.1 billion directly supporting small-business export sales – also an Ex-Im record. Ex-Im Bank’s total authorizations are supporting an estimated $50 billion in U.S. export sales and approximately 255,000 American jobs in communities across the country. For more information, visit www.exim.gov.
