US Exim Bank extends $1.1bn loan to Air India for Boeing purchases
30 January 2010
The National Aviation Company of India Ltd (NACIL), the holding company for national carrier, Air India, has secured a $1.1 billion loan from the Export-Import Bank of the United States (Ex-Im Bank) for financing of aircraft sold by Boeing to Air India.
At a ceremony held at Ex-Im Bank headquarters, the financing documents were signed by Ex-Im Bank chairman and president, Fred P Hochberg, NACIL chairman and managing director, Arvind Jadhav, and JPMorgan Chase & Co (New York) head of Global Structured Trade Finance, Astar Saleh. Also present at the ceremony was Bharat Bhusan, joint secretary and financial advisor to India's ministry of civil aviation.
The Indian government has provided Ex-Im Bank with a sovereign guarantee.
"The fast-growing Indian market continues to offer enormous opportunities for US exporters in many sectors, including transportation," said chairman Hochberg at the ceremony. "Air India, as one of Ex-Im Bank's largest customers, plays a major role in this very important trade relationship."
"Air India acknowledges Ex-Im Bank's continuing support for the acquisition plan that Air India has undertaken to rejuvenate its fleet. This support has enabled Air India to raise finances for acquiring these latest state-of-the-art technology aircraft at competitive rates of interest as compared to commercial financing. We look forward to a continued relationship with Ex-Im Bank on future Boeing aircraft financings," said Air India managing director, Arvind Jadhav.
Today's transactions represent the second partial conversions of two Ex-Im Bank preliminary commitments to final commitments. Ex-Im Bank is guaranteeing loans extended by JP Morgan Chase & Co.