1-Feb-2010 8:40 AM

Air India and Ex-Im Bank conclude USD1.1 billion financing transaction

Air India's parent, National Aviation Company of India Ltd (Nacil) and the Export-Import Bank of the United States (Ex-Im Bank) signed (28-Jan-2010) a USD1.1 billion financing agreement to support the purchase of B777-200LRs and B777-300ERs, to be operated by Air India and B737-800s to be operated by Air India Charters Ltd. The purchases represent the third phase of Air India's 68-aircraft fleet renewal plan. The current transactions represent the second partial conversion of two Ex-Im Bank preliminary commitments to final commitments. The final commitments were approved by Ex-Im Bank's Board of Directors in Jun-2009. Ex-Im Bank is guaranteeing loans extended by JP Morgan Chase & Co. The Indian Government has provided Ex-Im Bank with a payment guarantee of Air India's obligations under the financing agreement. Ex-Im Bank previously approved a USD1.2 billion financing in 2007 and a USD548.8 million financing in 2008 to support the financing of Nacil's purchases of Boeing aircraft. [more]