LOT Polish Airlines is on track to become the first European carrier to use US Export-Import Bank (Ex-Im) bond financing for the purchase of its upcoming Boeing 787 deliveries.
The Polish carrier secured financing for the first five aircraft of the type with an Ex-Im-guaranteed loan provided by Apple Bank Savings. DVB Bank advised LOT on the mandate, which includes an option to tap the bond market
LOT's issue of Ex-Im-backed bonds would "further reduce financial costs", says Zbigniew Mazur, member of the management board of LOT. Mazur says Apple Bank offered the carrier "very flexible financing conditions".
The carrier also retained the services of KGS-Alpha Capital Markets for a possible bond issue.
The first aircraft under the mandate is scheduled for delivery this month. LOT will receive the remaining four aircraft through March 2013.
LOT's initial 787 will have its first flight across the Atlantic on 16 January, 2013. From February 2013, the carrier will serve New York and Toronto with the 787. Beijing is the carrier's third destination in March 2013.