Ethiopian Airlines, Africa’s largest carrier, has announced a USD $450 million loan agreement to finance the acquisition of five new Boeing aircraft. The deal comprises three Boeing 737-8 and two Boeing 777F (Cargo) planes.
- •The financing arrangement has been facilitated by Citi’s Corporate Banking and Export Agency and Finance teams, with the Export-Import Bank of the United States (EXIM) providing a guarantee.
- •The USD $450 million loan represents Citi’s most substantial aircraft financing in Ethiopia in the last decade.
- •The loan will be secured against the value of the five aircraft.
“This financing will allow us to expand our fleet size by adding five new aircraft. Fleet expansion being one of our strategic growth pillars, we will continue expanding and modernizing our fleet size so as to grow our business and reach new markets.” The CEO of Ethiopian Airlines Group, Mr. Mesfin Tasew, expressed about the partnership with CitI.
- •The delivery of these aircraft is scheduled to take place in the U.S. state of Washington in December.
- •Ethiopian Airlines has set ambitious goals for its fleet, aiming to grow it to over 270 aircraft by 2035.
- •The new aircraft, consisting of three Boeing 737-8 MAXs and two Boeing 777 Freighters, will increase Ethiopian Airlines’ fleet to a total of 150.
“Citi has been serving Ethiopian Airlines for many decades, and we are pleased to support its growth with financing for five new aircraft. Both our Banking and Treasury and Trade Solutions partners were instrumental in the delivery of this deal, and I would like to thank all teams for their collaboration.” Akin Dawodu, Citi Sub Saharan Africa Head.
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