Ex-Im Bank approves $1.1 Billion funding for Lion Air’s fleet of 737-900ERs

Victoria
By Victoria March 6, 2013 17:12

Ex-Im Bank approves $1.1 Billion funding for  Lion Air’s fleet of 737-900ERs

The Export-Import Bank of the United States (Ex-Im Bank) has approved a final commitment of $1.1 billion to finance the export of a fleet of Boeing 737-900ER (extended range) aircraft with CFM International aircraft engines 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).

The transaction will support an estimated 7,300 jobs at Boeing’s manufacturing facilities in Renton, Wash., and its suppliers in numerous states across the country.

“Ex-Im Bank is pleased to support part of Lion Air’s historic purchase order of Boeing extended-range aircraft. This is a tremendous opportunity for American exporters and will help to sustain thousands of jobs in the U.S. aerospace industry for years to come,” said Ex-Im Bank Chairman and President Fred P. Hochberg.

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, N.Y. 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 Boeing 737 aircraft ordered in November 2011 – the largest commercial aircraft order in aviation history.

“We’re proud that Lion Air has put its faith in the 737-900ER by being the launch customer and largest operator of the type,” said Dinesh Keskar, senior vice president of Asia Pacific and India Sales, Boeing Commercial Airplanes. “Lion Air recognizes the business value and success that comes from investing in a quality, U.S.-built product. 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.”

Lion Air President and CEO Rusdi Kirana noted, “This substantial final commitment reinforces the invaluable relationship that we enjoy with the U.S. Ex-Im Bank and positions the Lion Group and Transportation Partners for future growth across the ASEAN region.”

Victoria
By Victoria March 6, 2013 17:12
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