South Africa Comair mandates second batch of 737-800s

This story is sourced from

South African-based Comair has returned to Investec with the mandate for the financing of four new Boeing 737-800s.

The aircraft are part of an eight 737-800 order placed with Boeing in February 2011.

Investec is expected to arrange an US Export-Import Bank (Ex-Im)-supported loan with two aircraft delivering in 2015 and another two in 2016.

The bank was the pre-delivery payment provider and arranger of the export credit agencies debt on the first four 737-800s.

South Africa's Rand Merchant Bank provided long-term debt on three deliveries and Private Export Funding (PEFCO) on the remaining aircraft.

Sources say both bank may again fund the ECA-backed debt on the four deliveries.

Last September Comair requested Ex-Im support to cover six 737-800 deliveries. At the time, the carrier's application was in excess of $100 million.