Gol issues first series of Ex-Im notes for engine maintenance financing

Washington DC
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Brazilian low-cost carrier Gol has issued the first series of guaranteed notes for financing to support its CFM International CFM56-7B engine maintenance by Delta TechOps.

The two-year term notes, which total $84.8 million, are guaranteed by the US Export-Import Bank. Gol says that the first series of notes carry an all-in interest rate of 1% per year, totalling $39.1 million.

Besides supporting the engine maintenance services, the notes will also support the strategic partnership between Gol and Delta that was forged in early 2011. Gol signed the deal with Delta to provide the maintenance services on the engines on its Boeing 737s in December 2010.

US Ex-Im approved the loan guarantee in April.