Ethiopian Airlines has announced a USD $450 million loan agreement to finance the acquisition of five new Boeing aircraft.The transaction was facilitated through Citi’s Corporate and Export Agency Finance divisions and guaranteed by the U.S. Export-Import Bank.
The deal comprises three Boeing 737-8 and two Boeing 777F (Cargo) planes , with deliveries scheduled at Boeing’s facilities in Washington by December 2024.
As part of its ambitious plans to nearly double its fleet in the next 12 years to more than 270 aircraft and fly to over 200 airports across the world, Ethiopian Airlines had placed orders with both Airbus SE and Boeing for around 40 aircraft in November.
The CEO of Ethiopian Airlines Group, Mr. Mesfin Tasew, said,
“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.”
For Citigroup, the association with Ethiopian Airlines and the announced loan is part of the bank's efforts to expand its business across the continent of Africa. Though it does not have a physical office in Ethiopia, the company remains the only US bank providing correspondent banking in the country.
Akin Dawodu, Citi Sub Saharan Africa Head, said ,
“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.”
