El Al taps capital markets with $94m Ex-Im bond

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El Al Israel Airlines has secured $94.3 million through a US Export-Import (Ex-Im) bond financing.

The country's flag-carrier airline issued a 12-year bond, Rimon LLC, to fund a Boeing 737-900ER (MSN 41552) that was delivered last month.

The bond priced at 2.45%, El Al says in an announcement on the Tel Aviv stock exchange.

El Al says the issuance was arranged by a unidentified Canadian bank.

An estimated $47.6 million from the issuance will be refunded to the Canadian bank, says El Al, with the balance funding another aircraft delivery (MSN 41553) due on 26 November.

Earlier this year, El Al received approval for Ex-Im bank support for the financing of in a $190 million transaction.

The carrier announced on 6 November the signing of a four-aircraft financing with a Canadian bank with Ex-Im guarantees. At the time, it said the aircraft could be refinanced in the capital markets.