in Business & Finance

Ethiopian Airlines closes Junior Loan Financing with ING

Posted 21 November 2014 · Add Comment

Ethiopian Airlines has secured a USD 41.4 million 7-year junior loan facility from ING Capital LLC for the acquisition of two Boeing 777 freighter aircraft.

 

The senior debt is supported by Ex-Im Bank and was provided by another financial institution with ING as their co-arranger. The junior lender benefits from a second priority interest in the security package which secures both the Ex-Im Bank and junior loan financing. 

Ethiopian Airlines utilizes the junior loan facility to finance a portion of the net purchase price of the aircraft which is not supported by Ex-Im Bank. 

ING Capital was the sole arranger and lender of the junior loan financing and will also act as the agent throughout the term of the transaction. The financing closed concurrently with the delivery of the first aircraft on October 31. The second aircraft is scheduled to arrive in Addis Ababa on November 21, 2014. 

Ethiopian Airlines successfully secured the junior loan financing based on the strong relationship and thorough understanding of the airline’s financing requirements on the part of ING Capital LLC. 

Nega Mekonnen, chief financial officer of Ethiopian Airlines, said: "The financial support for our acquisition of the two B777 Freighter aircraft is critical to Ethiopian Airlines as we aim to sustain our position as the largest cargo operator in Africa. These aircraft will help us increase our capacity and service quality for the ever growing perishable cargo market." 

While Terina Golfinos, Managing Director and Head of ING Capital’s Structured Export Finance team in New York, said, "We were delighted to have the opportunity to close this important financing for Ethiopian Airlines and contribute in some small measure to their ongoing success as the regional carrier of choice. ING has had a lending relationship with Ethiopian Airlines since 2007, and we are pleased to support them with the expansion of their cargo division, which is crucial for Ethiopia’s growing export sector." 

This year alone, Ethiopian has phased-in 14 additional aircraft, including five B787 Dreamliners, one B737-800 with Sky Interior, one B777-300 two B777 freighter and four BombardierQ-400 aircraft.

* required field

Post a comment

Other Stories
Advertisement
Latest News

Flight for sore eyes

It's not rare to spot an MD-10 aircraft in African skies but there is one unique jet, owned by Orbis that is saving the sight of thousands and offering life-changing training in eye care.

Etihad Airways adds new B787 to Casablanca route

Etihad Airways is to operate its flagship Boeing 787 Dreamliner on the Abu Dhabi – Casablanca route, effective 1 May 2018.

Conference plots the future direction for drones

Unmanned air vehicles and their potential uses throughout Africa were put under the microscope at the Drones East Africa Conference in Nairobi. Githae Mwaniki reports.

Air Austral accedes to Air Madagascar's shareholding

Air Austral has completed its accession to Air Madagascar's share capital, reports ch-aviation.

The ATR 72-600 tours West Africa

From December 11 to 14, an ATR 72-600 in the colours of Air Sénégal will embark on a demonstration tour in three West African countries.

EgyptAir on cloud nine with latest 737-800 delivery

EgyptAir has received its ninth and final Boeing 737-800NGs on a lease deal from Dubai Aerospace Enterprise (DAE) and valued at $864 million. All nine were handed over during in the course of the past year.

Aviation Africa SK18418
See us at
Aviation Africa BT18418