El Al Israel Airlines has secured a $120 million loan to finance one 787-9 aircraft.
The aircraft financing has been granted for a period of 12 years, using a structure that allows the amount of the loan to be withdrawn over a period of around two years.
Bank Hapoalim is leading a syndication in addition to Mizrahi-Tefahot Bank to grant El Al with the financing for the aircraft, with this being the first transaction in several years in which Israeli banks have financed the purchase of wide-body aircraft for El Al.
Yancale Shahar, El Al's chief financial officer, noted that this latest aircraft is due to arrive with the airline in the coming month, during a period of “major seat shortages at Ben Gurion Airport".
“The loan for the purchase of the aircraft granted at this time reflects the company's desire to support the Israeli economy and business in Israel, and to create deeper engagement of Israeli banks in financing for El Al; the company is continuing to implement its strategic plan,” commented Shahar.
With the delivery of this latest aircraft, the airline is aiming is to expand its flight schedule and seat offerings for long-haul destinations such as North America, Japan and Thailand.