Citi and UK Export Finance (UKEF) have closed a new 12-year loan to finance a high-power plane engine for Philippine Airlines.
The deal to cover the Rolls-Royce Trent XWB-97 engine marked the first export credit agency-backed financing raised by the airline, which is the flag carrier of the island nation, in more than 12 years.
Citi acted as the sole lead arranger and facility agent on the UKEF-covered loan.
Manish Bajaj, Citi Philippines’ corporate banking head, said the “landmark UKEF-backed financing transaction” highlighted the bank’s “commitment to delivering innovative and strategic financing solutions for our clients, while reinforcing our partnership with the Philippines’ flag carrier through its next phase of growth and expansion”.
Philippine Airlines senior vice president and chief supply chain officer, Alvin Limqueco, said the agreement marked a “significant step in our fleet modernisation” and in bolstering the company’s long-haul operations.
UKEF’s CEO Tim Reid also said the agency was “proud” to have played a part in the financing: “This deal encapsulates UKEF’s vision to support UK exporters and jobs, drive local growth and create global impact.”
He added the new high-tech Rolls-Royce engines will “drastically help to reduce emissions”.
The move comes amid other recent sustainable financing efforts by UKEF, most of which were announced as part of the United Nation’s annual climate summit, COP 30, that kicked off in Brazil on November 10.
The UK’s export credit agency – which has a target to provide £10bn of “clean growth finance” by 2029 – last week announced a reinsurance agreement with its Brazilian counterpart, the Agência Brasileira Gestora de Fundos Garantidores e Garantias.
This will see Brazilian exports that include British content benefit from UKEF-backed guarantees, opening collaboration opportunities in energy transition and infrastructure projects, UKEF argued.
The agency also led the publication of the first progress report from the Net Zero Export Credit Alliance, which UKEF has chaired since 2028, and which detailed how the group is working to align US$338bn of export support with net zero by 2050 goals.
At the same time, UKEF’s General Export Facility scheme has backed Hampshire-based renewables company Hive Energy to help it scale up solar power projects across Europe, North and South America, the Caribbean and Africa.
