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Signing of $1.23 Billion Ex-Im Bank Loan Guarantee Signals Growing Importance of Indian Market

FOR IMMEDIATE RELEASE October 8, 2007

Media Contact Name/Phone: 

Marianna Ohe (202) 565-3200

WASHINGTON, D.C. -- The Export-Import Bank of the United States (Ex-Im Bank) and National Aviation Company of India (NACIL) today reached final agreement on a $1.23 billion financing package in support of the sale by The Boeing Co. of 17 aircraft and four spare engines to NACIL to meet growing passenger demand. NACIL does business as Air India (international routes) and Air India Express (domestic and regional routes).

The documents were signed at a ceremony at Ex-Im Bank headquarters in Washington, D.C., by Ex-Im Bank Chairman and President James H. Lambright, NACIL Chairman and Managing Director V. Thulasidas, and John Neblo, executive director of ABN AMRO, 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. India has one of the most rapidly growing aviation markets in the world. The need for improving, expanding and modernizing the existing airport infrastructure throughout India likewise grows with the addition of new and efficient aircraft. Accordingly, Ex-Im Bank stands ready to assist India in financing of U.S. goods and services that will help meet India's huge demand for aviation infrastructure.

The completion of the financing documentation for the 17 aircraft and spare engines represents the first phase of Air India's 68-aircraft fleet renewal plan.

Under today's 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 Co., Cincinnati, Ohio, for Air India. The Bank also signed a $363.5 million guarantee of an ABN AMRO long-term loan to support the sale of Boeing 737-800 aircraft and CFM-56 spare engines from CFM International Inc., Cincinnati, Ohio, for Air India Express.

The Ex-Im Bank signing ceremony was attended by Ambassador of the Republic of India to the United States Ronen Sen; Boeing Commercial Airplanes Senior Vice President Dinesh Keskar; and other senior Indian government officials, representatives of General Electric Aircraft Engines and CFM International, and participating Indian banks.

Ex-Im Bank, the official export-credit agency of the United States, is in its 73rd year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export-credit insurance and direct loans. For more information, visit www.exim.gov.