The Export-Import Bank of the United States (US Ex-Im) has signed an agreement on a US$1.23bn financing package with National Aviation Company of India (Nacil). ABN AMRO is acting as the guaranteed lender on the transaction.


The deal supports the sale by Boeing of 17 aircraft and four spare engines to Nacil to meet growing passenger demand.


Nacil operates under the name Air India for all international routes, and Air India Express for domestic and regional routes. Details of the deal and the required documents were all signed at a ceremony held at US Ex-Im Bank’s headquarters in Washington D.C by US Ex-Im chairman and president James Lambright, Nacil chairman and managing director V. Thulasidas and John Neblo, executive director of ABN AMRO.


Lambright comments on the deal: “India has one of the most rapidly growing aviation markets in the world. The need for improving, expanding and modernising the existing airport infrastructure throughout India likewise grows with the addition of new and efficient aircraft. Accordingly, US Ex-Im stands ready to assist India in financing of US goods and services that will help meet India’s huge demand for aviation infrastructure.”


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.


The financing package includes a US$862.6mn guarantee of an ABN AMRO long-term loan to support the sale of Boeing 777-200LR aircraft, Boeing 777-300 ER aircraft and GE90 spare engines from General Electric for Air India.


US Ex-Im signed a further US$363.5mn guarantee for long-term loan arranged by ABN AMRO to support the sale of Boeing 737-800 aircraft and CFM-56 spare engines from CFM International for Air India Express.