On November 20, Ethiopian Airlines took delivery of its 1st Boeing B777-200LR aircraft, the first of five B777-200LR aircraft being
financed by Citi and guaranteed by the US Export-Import Bank (Ex-Im
Bank). The four other aircraft are scheduled for delivery in December 2010 and January, April and July next year.
Citi was the sole mandated lead arranger of the $75 million Pre-Delivery Payment (PDP) financing, as well as the Post-Delivery financing related to an up to $605 million Ex-Im Bank guaranteed financing and an up to $85 million second lien commercial financing (which is currently in progress).
The PDP financing facility was syndicated to five banks including Citibank NA, DBS Bank, Ghana International Bank, Industrial and Commercial Bank of China, and PTA Bank (Eastern and Southern African Trade and Development Bank).
The proposed rare second lien commercial loan, which is currently in progress, is being syndicated to a group of African Development Financial Institutions. Clifford Chance represented Citi on the deal, while Pillsbury Winthrop Shaw Pittman acted for Ethiopian Airlines.
Ethiopian Airlines CEO designee, Ato Tewolde G. Mariam, said: “Ethiopian Airlines highly values the relationship with Citi, which goes back 15 years. Citi is one of a few aviation specialist banks that have maintained its presence in this challenging market environment, and we were very pleased with the flexibility shown and by the cost-effective financing that was arranged.”
Naveed Riaz, Citi Africa’s CEO and managing director said: “This is Citi's first B777 financing for an African Airline, and we are delighted it is for a longstanding partnership such as we have with Ethiopian Airlines. We look forward to continuing to grow this relationship and participate in Ethiopian Airlines' global success.”