Ethiopian Airlines, Africa’s largest carrier, has announced a landmark $450 million loan agreement with Citi that will finance five new Boeing aircraft: three Boeing 737-8 and two Boeing 777F (Cargo).

The loan will be secured against the value of the five planes and has been arranged exclusively by Citi’s Corporate Banking and Export Agency and Finance teams. It is guaranteed by the Export-Import Bank of the United States (EXIM).

Ethiopian Airlines is a longstanding client of Citi’s Treasury and Trade Solutions (TTS) business, and their support and partnership have been instrumental to reaching the deal, a statement said. Different parts of the bank, all working together, reflect Citi’s unique ability to offer different banking services to clients with cross border needs.

The $450 million loan is Citi’s largest aircraft financing in Ethiopia within the last decade and will help support both the bank’s bid to increase its footprint in the region, and the airline’s ambitious growth plan.

The five new aircraft will bolster Ethiopian Airline’s fleet to 150 in total, and delivery of all the aircraft will be completed in Washington in December. The new arrivals will help Ethiopian serve all its destinations by accelerating its expansion throughout the world, and will further bolster Ethiopian Cargo & Logistics Services’ position as Africa’s largest cargo network operator.

Ethiopian Airlines has ambitions to grow its fleet to over 270 aircraft by 2035.

Lauding the long-standing partnership of the two parties, Ethiopian Airlines Group CEO Mesfin Tasew said: "We are pleased to announce that we have reached an agreement with Citi to secure a $450m loan. This financing will allow us to expand our fleet size by adding five new aircraft, three B737-8 MAXs and two 777 Freighter.”

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. A lot of work has gone into getting this deal off the ground, and it is thanks to Citi’s strong relationships and connectivity both within the country and across our global network that we have been able to make it happen.”

Citi has been working with Ethiopian Airlines for 45 years, supporting the airline’s treasury operations and working capital management in 27 countries across five continents. – TradeArabia News Service