Vietnam Airlines has received preliminary approval from US Ex-Im Bank for financing support in excess of US$400mn to support the acquisition of four Boeing 787-8 aircraft and engines, which will be operated by Vietnam Airlines.
Vietnam Airlines, the national flag carrier of Vietnam, is a state-owned enterprise, which was formed in 1989. It flies both domestic and international routes.
In 2003 and 2004, US Ex-Im financed four Boeing 777-200ER aircraft for Vietnam Airlines.
“Our experience with Vietnam Airlines has been very positive,” says James Lambright, US Ex-Im Bank president and chairman. “We are looking forward to receiving Vietnam Airlines’ final application and hope, in the future, to finance additional US-manufactured aircraft for Vietnam Airlines and to finance the sale of other US goods and services to other companies in Vietnam.”
Although US-value added goods and services represent the majority of the aircraft and engines in this transaction, there is expected to be a material amount of Japanese manufactured components in the Boeing 787 aircraft and, therefore, the Japanese export credit agency, Nippon Export and Investment Insurance (Nexi), has also issued its preliminary commitment to co-finance the Japanese content on these Boeing 787 aircraft.
The preliminary commitment issued by Ex-Im is made in response to a preliminary application for financing and, although non-binding, provides an indication that Ex-Im Bank is interested in financing the type of transaction described in the application. Final approval must follow receipt of a final commitment application, review by staff, and final action by Ex-Im Bank’s board of directors.