Ethiopian Airlines closes junior loan financing with ING

Ethiopian Airlines has secured a US$41.4m 7-year junior loan facility from ING Capital for the acquisition of two Boeing 777 freighter aircraft. The senior debt is supported by Ex-Im Bank and was provided by another financial institution with ING as their co-arranger. The junior lender benefits from a second priority interest in the security package which secures both the Ex-Im Bank and junior loan financing. Ethiopian Airlines is utilizing the junior loan facility to finance a portion of the net purchase price of the aircraft which is not supported by Ex-Im Bank. ING Capital was the sole arranger and lender of the junior loan financing and will also act as the agent throughout the term of the transaction. The financing closed concurrently with the delivery of the first aircraft on October 31st. The second aircraft is scheduled to arrive in Addis Ababa on November 21st, 2014. Ethiopian Airlines successfully secured the junior loan financing based on the strong relationship and thorough understanding of the airline’s financing requirements on the part of ING Capital.