Will Finance Four Of Ethiopia's 10 Dreamliners

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 benefited 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.

FMI: www.exim.gov