Ethiopian Airlines gains $41.4m junior loan

Air Line Fleet Management
by Mary-Anne Baldwin

Ethiopian Airlines has agreed a $41.4m seven-year junior loan facility from ING Capital for the purchase of two 777 freighter aircraft.

The senior debt is supported by Ex-Im Bank and was provided by another unnamed 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.

Nega Mekonnen, CFO of Ethiopian Airlines, said: “The financial support for our acquisition of the two 777 Freighter aircraft is critical to Ethiopian Airlines as we aim to sustain our position as the largest cargo operator in Africa.”

While Terina Golfinos, MD and head of ING Capital’s Structured Export Finance team in New York, said, “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 787 Dreamliners, one 737-800, one 777-300 two 777 freighters and four Bombardier Q-400 aircraft.

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