JP Morgan Finances Ethiopian Airlines’ Acquisition of 10 Boeing B787s

Africa’s Ethiopian Airlines said that it has secured US$1bn of financing from JP Morgan towards its purchase of 10 Boeing B787-8-Dreamliners.

Ethiopian added that the Export-Import Bank (Ex-Im Bank) of the US provided export credit agency support via guaranteed loans that cover 85% of the total cost of the aircraft. The balance will be financed by a group of financial institutions including ING Capital, the Emerging Africa Infrastructure Fund (EAIF), the Netherlands Development Finance Company (FMO), the ICF Debt Pool LLP (ICF), and from Ethiopian’s own internal cash resources of Ethiopian.

Ethiopian took delivery of its first Dreamliner on 14 August in Seattle, Washington. It added that a series of events are planned to celebrate this milestone in the presence of Ethiopian and US government officials, ambassadors and representatives of international organisations as well as Boeing and other partners’ executives. The airline will take delivery of five Dreamliners before the end of the fiscal year.

“The financial support for our acquisition of the 10 B787-8 aircraft is critical to Ethiopian Airlines as we aim to become the leading African airline,” said Tewolde Gebremariam, chief executive officer (CEO) of Ethiopian. “Our first B787-8 aircraft will first be deployed, on rotation basis, in our African destinations. Thereafter, once we receive our second Dreamliner by mid-September, it will operate on our Washington DC route. Ethiopian is the first airline outside Japan to own this game changing aircraft.”

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