Washington: The Export-Import Bank of the US and National Aviation Company of India on Wednesday reached an agreement to assist the airlines get a financial package of $1.23 billion to buy Boeing aircraft and spare engines to meet its growing passenger demand.
Ex-Im Bank would render a financing package of $1.23 billion to NACIL, the company formed after the merger of Air India and Indian Airlines, to buy 17 aircraft from the Boeing Co and four spare engines from General Electric Company.
The documents were signed at a ceremony at Ex-Im Bank headquarters here by the bank’s chairman and president James H. Lambright, NACIL chairman and MD V Thulasidas and ABN AMRO executive director John Neblo. ABN Amro is the Ex-Im Bank guaranteed lender.
“Ex-Im Bank is delighted to reach this important milestone in our relationship with Air India and the Government of India,” Lambright said in a statement issued by Ex-Im Bank.
“The bank stands ready to assist India in financing of US goods and services that will help meet India’s huge demand for aviation infrastructure,” he added.
The completion of the financing documentation for the aircraft and spare engines represents the first phase of Air India’s 68-aircraft fleet renewal plan.
Under the agreements, Ex-Im Bank signed an $862.6 million guarantee of an ABN AMRO long-term loan to back the sale of Boeing 777-200LR aircraft, Boeing 777-300 ER aircraft, and GE90 spare engines from General Electric Company in Ohio, for Air India.