Ethiopian Airlines has announced a significant USD $450 million loan agreement facilitated by Citi’s Corporate Banking and Export Agency and Finance teams.
This landmark deal, guaranteed by the Export-Import Bank of the United States (EXIM), will finance the acquisition of five new Boeing aircraft—three Boeing 737-8 and two Boeing 777F (Cargo).
Citi’s long-standing partnership with Ethiopian Airlines through its Treasury and Trade Solutions (TTS) business played a pivotal role in realizing this deal, showcasing Citi’s ability to offer diverse banking services for clients with cross-border needs.
This USD $450 million loan is Citi’s most substantial aircraft financing in Ethiopia in the past decade, contributing to both the bank’s regional expansion efforts and the airline’s ambitious growth plan.
The loan will be secured against the value of the five planes, and the delivery of these aircraft, which will expand Ethiopian Airlines’ fleet to 150, is scheduled for completion in December in the U.S. state of Washington.
This strategic move aims to accelerate the airline’s global expansion, allowing it to better serve its destinations and reinforce Ethiopian Cargo & Logistics Services as Africa’s largest cargo network operator.
Ethiopian Airlines envisions growing its fleet to over 270 aircraft by 2035.
Expressing satisfaction with the partnership, Ethiopian Airlines Group CEO Mr. Mesfin Tasew stated, “This financing will allow us to expand our fleet size by adding five new aircraft, three B737-8 MAXs and two 777 Freighters. Fleet expansion is one of our strategic growth pillars, and we will continue expanding and modernizing our fleet size to grow our business and reach new markets.”
Akin Dawodu, Citi Sub Saharan Africa Head, highlighted Citi’s decades-long relationship with Ethiopian Airlines and emphasized the collaborative effort involved in securing the deal.
He acknowledged the instrumental role of both Citi’s Banking and Treasury and Trade Solutions partners in making the agreement possible.
Having worked with Ethiopian Airlines for 45 years, Citi remains committed to supporting the airline’s operations and growth ambitions across five continents.
Ethiopian Airlines, a key player in Africa’s economic development, connects 135 international passenger and cargo destinations, fostering tourism and facilitating import-export activities.
As Citi commemorates its 70th year working with Ethiopian clients, this enduring partnership continues to contribute to the success of one of Africa’s leading companies.
