The U.S. Export-Import Bank has approved a final commitment of $1.1 billion to finance the export of Boeing 737-900ER planes to Lion Air, the largest privately owned airline in Indonesia.
The aircraft will be delivered to Lion Air, Malindo Airways (Malaysia) and Batik Air (Indonesia).
Ex-Im Bank estimates the transaction will support an estimated 7,300 jobs at Boeing’s plant in Renton, Wash., and its suppliers in numerous states across the country.
The authorization is a final commitment of a preliminary offer of financing that the bank approved in 2011. Ex-Im Bank is providing a guarantee of financing provided by Apple Bank for Savings in New York. Additional funding may be provided by capital-markets investors via an Ex-Im Bank-guaranteed bond.
The financing will support a portion of Lion Air’s outstanding orders for B737-900ER aircraft, which includes 230 B737s ordered in November 2011 – the largest commercial aircraft order in aviation history.
“Ex-Im Bank’s financing support allows us to compete on the merits of our product and not be disadvantaged by financing offered by our competitors,” said Dinesh Keskar, Boeing’s senior vice president of Asia-Pacific and India sales, in a statement.
Based in Jakarta, Lion Air provides passenger service throughout Indonesia and to other countries in Southeast Asia and Saudi Arabia.
U.S. backs $1.1 billion finance for planes to Indonesia
