The Board of Directors of the Export-Import Bank of the United States (EXIM) has approved two transactions totalling $832.5 million in loan guarantees for one Boeing 787-9 aircraft, one 737 MAX 8 aircraft and one 737 MAX 9 aircraft to Turkish Airlines.
NAM’s Director of Trade Facilitation Policy Ali Aafedt noted in a letter to EXIM, “As the aerospace industry emerges from the difficulties brought on by the COVID-19 pandemic, EXIM Bank’s support, where necessary, remains more important than ever.”
“EXIM’s support for these aircraft exports to Turkish Airlines is especially needed at this time because of the significant financial impact of COVID-19 pandemic worldwide. These transactions will support thousands of American jobs throughout the aircraft manufacturing supply chains and aid in this industry’s recovery,” said Acting President and Chairman James Burrows.
“EXIM has more than 20 years of experience with Turkish Airlines. These are solid transactions at a critical time, and they provide a reasonable assurance of repayment,” said EXIM Acting First Vice President and Vice Chairman James C. Cruse. He also cited the benefits of anticipated risk-sharing with other export credit agencies on one transaction. Currently, EXIM is pursuing co-financing/risk sharing with Japan’s export credit agency, NEXI, and Italy’s SACE for the 787-9 aircraft transaction in order to reduce EXIM’s net exposure.
“The EXIM Board’s actions fill a gap by providing financing in a challenging market and in difficult economic conditions,” said EXIM Board member and former Congressman Spencer Bachus. “In addition, over 4,500 jobs across the country are supported by this transaction, including positions in numerous small businesses in the supply chain.”
For the first transaction, Natixis is arranging an asset-backed lease for the 787-9 aircraft. Natixis, BPCE (parent company of Natixis), and JP Morgan Chase in Germany will serve as the guaranteed lenders. For the second transaction, BNP Paribas is arranging an asset-backed lease for the 737 MAX 8 aircraft and 737 MAX 9 aircraft. BNP Paribas, Citibank, Bank of America, and Caixabank will serve as guaranteed lenders. All aircraft are expected to be delivered by the end of 2021.