TAAG finances 777 with $265m first-priority Ex-Im loan

Source: Flightglobal.com
This story is sourced from Flightglobal.com

TAAG Angola Airlines (Linhas Aéreas de Angola) is purchasing GE-powered Boeing 777-300ER aircraft with $256 million in long-term loan guarantees from the Export-Import Bank of the United States (Ex-Im).

The transaction is structured as an asset-backed finance lease in which Ex-Im Bank retains a first-priority security interest in the financed aircraft. Ex-Im's guarantee is supported by a sovereign guarantee from the Angolan government.

As previously reported on CAO, the guaranteed lender is the Private Export Funding Corporation (PEFCO) in New York.

HSBC Bank is the arranger.

Ex-Im Bank previously provided approximately $338.5 million in loan guarantees in 2006 to assist TAAG Angola Airlines in its purchase of 737-700 and 777-200ER aircraft

"Ex-Im Bank's financing support of our acquisition of 777-300ER aircraft is critical to TAAG's success in achieving a strongly competitive position in the Africa-to-Europe marketplace," says Pimentel Araújo, chairman of TAAG Angola Airlines.

In the first seven months of fiscal year 2011, Ex-Im Bank approved $14.8 billion in total financing authorisations, supporting $17.8 billion in US export sales. This seven-month authorisations figure is the highest in the bank's history.