Ethiopian Airlines has sealed a groundbreaking $450 million loan agreement with Citi, facilitating the acquisition of five new Boeing aircraft. The deal includes three Boeing 737-8 and two Boeing 777F (Cargo), aimed at fortifying Ethiopian Airlines’ position as a key player in the global aviation landscape.
Citi’s Corporate Banking and Export Agency and Finance teams orchestrated the loan, which is backed by the Export-Import Bank of the United States (EXIM). This marks Citi’s most substantial aircraft financing in Ethiopia in the last decade, emphasizing the bank’s commitment to expanding its influence in the region and supporting the airline’s ambitious growth plans.
The loan is a testament to the enduring partnership between Ethiopian Airlines and Citi’s Treasury and Trade Solutions (TTS) business. The collaboration reflects Citi’s versatility in delivering diverse banking services to clients with cross-border requirements.
The fleet expansion, a strategic pillar for Ethiopian Airlines, will bring the total number of aircraft in its fleet to 150, with deliveries expected in December from the U.S. state of Washington. This addition aims to accelerate the airline’s global expansion and reinforce Ethiopian Cargo & Logistics Services’ standing as the largest cargo network operator in Africa. Ethiopian Airlines envisions further growth, targeting a fleet of over 270 aircraft by 2035.
Expressing satisfaction with the agreement, Ethiopian Airlines Group CEO Mr. Mesfin Tasew said, “This financing will allow us to expand our fleet size by adding five new aircraft. We are grateful for the mutually beneficial partnership we have established with Citi and look forward to further strengthening it.”
Akin Dawodu, Citi Sub Saharan Africa Head, highlighted the bank’s longstanding relationship with Ethiopian Airlines, spanning 45 years, and praised the collaborative effort behind the deal. “Citi’s strong relationships and connectivity both within the country and across our global network” were instrumental in realizing the agreement, Dawodu stated.
Ethiopian Airlines, a key player in Ethiopia’s economic growth, operates across 135 international passenger and cargo destinations, including 63 African cities. The loan signifies not only a financial milestone for the airline but also highlights the continued economic partnership between Ethiopia and Citi, which has been serving Ethiopian clients for 70 years.
