Air India nets $1 billion financing
The U.S. Export-Import Bank will provide $1.1 billion in financing of U.S.-manufactured aircraft sold by The Boeing Co. to the National Aviation Co. of India Ltd., also known as Air India.
Ex-Im Bank said at a signing ceremony for the transaction on Jan. 28 that the Indian government has provided the bank with a payment guarantee of Air India's obligations under the financing.
'The fast-growing Indian market continues to offer enormous opportunities for U.S. exporters in many sectors, including transportation,' said Ex-Im Bank Chairman and President Fred P. Hochberg, in a statement. 'Air India, as one of Ex-Im Bank's largest customers, plays a major role in this very important trade relationship.'
The transactions represent the second partial conversions of two Ex-Im Bank preliminary commitments to final commitments. The final commitments were approved by the Ex-Im Bank's board in June 2009. Ex-Im Bank is guaranteeing loans extended by JP Morgan Chase & Co.
The financing will support the sale of B777-200s and B777-300s to be operated by Air India and B737-800s to be operated by Air India Charters Ltd. These purchases represent the third phase of Air India's 68-plane fleet renewal plan. Ex-Im Bank previously approved $1.2 billion financing in 2007 and a $548.8 million financing in 2008 to support the financing of Air India's purchases of Boeing planes.
Air India nets $1 billion financing
