Cote d'Ivoire: AfDB approves US$159 m corporate loan to Ethiopian Airlines

Abidjan, Cote d'Ivoire (PANA) - Ethiopian Airlines’ expansion plan and fleet modernization programme had a boost after the Board of Directors of the African Development Bank (AfDB) approved a financing package of US$ 159 million on Thursday.

The package comprises two tranches, with the first tranche (85% of the financing) being covered by African Trade Insurance, Africa’s export credit agency, which will provide credit risk insurance to the transaction.

"The investment is a reflection of the Bank’s new strategic thrust to achieve its five operational priorities and is rooted on the necessity to integrate Africa and improve air connectivity in the continent," said an AfDB statement.

Ethiopian Airlines is the flagship airline for Ethiopia, 100% owned by the government of Ethiopia. Its operations cover all aspects of aviation services including passenger services, cargo services, maintenance, ground handling, catering and training with the aviation academy.

With 93 destinations, the airline connects the continent through its pan-African routes and it also connects Africa to the rest of the world.

"The Bank’s support will allow Ethiopian Airlines to keep the momentum on its expansion plan and be on track on its route operating roadmap. Ethiopian Airlines is setting the standards for the aviation sector in Africa and operates a modern and fuel efficient fleet," the Bank said.

According to the statement, this corporate loan complements previous interventions approved by the AfDB in support of developing the aviation sector on the continent, both from its public and private sector windows.

"It is also a testimony of the Bank’s catalytic role in improving the operating environment and financial soundness of the aviation sector in the continent," the statement added, underlining the Bank's long-lasting relationship with Ethiopian Airlines.

The newly approved intervention is the second corporate loan to Ethiopian Airlines processed under the AfDB’s private sector window.
-0- PANA AR 15Dec2016

15 december 2016 16:49:50

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