Africa: Ethiopian Airlines secures $450 million loan for fleet expansion from Citi in landmark deal

Ethiopian Airlines, Africa’s largest carrier, has inked a historic $450 million loan agreement with Citi to finance the acquisition of five new Boeing aircraft, comprising three Boeing 737-8 and two Boeing 777F (Cargo). 

The deal, secured against the aircraft’s value, was exclusively arranged by Citi’s Corporate Banking and Export Agency and Finance teams, guaranteed by the Export-Import Bank of the United States (EXIM).

Ethiopian Airlines, a longstanding client of Citi’s Treasury and Trade Solutions (TTS) business, expressed gratitude for the vital role Citi played in facilitating the agreement. 

The loan represents Citi’s most substantial aircraft financing in Ethiopia in the last decade and aligns with both the bank’s regional expansion goals and the airline’s ambitious growth plan.

The arrival of the five new aircraft, scheduled for completion in December in the U.S. state of Washington, will expand Ethiopian Airlines’ fleet to 150 in total. 

This strategic move is expected to accelerate the airline’s global expansion, serving all destinations, and further solidifying Ethiopian Cargo & Logistics Services’ position as Africa’s largest cargo network operator.

CEO of Ethiopian Airlines Group, Mr. Mesfin Tasew, highlighted the significance of the agreement, stating, “Fleet expansion being one of our strategic growth pillars, we will continue expanding and modernising our fleet size so as to grow our business and reach new markets.”

Akin Dawodu, Citi Sub Saharan Africa Head, praised the enduring partnership, stating, “Citi has been serving Ethiopian Airlines for many decades, and we are pleased to support its growth with financing for five new aircraft.”

Citi, with a 45-year history of collaboration with Ethiopian Airlines, plays a crucial role in the airline’s treasury operations and working capital management across 27 countries. 

The bank’s global network will continue to facilitate Ethiopian Airlines’ expansion across Africa, Asia, the Americas, Europe, and beyond.

Ethiopian Airlines, a key player in Ethiopia’s economic growth, connects 135 international passenger and cargo destinations, including 63 African cities.

Citi’s milestone 70th year working with Ethiopian clients underscores its commitment to supporting the country’s economic development.

As Citi remains the only U.S. bank providing correspondent banking services to financial institutions in Ethiopia, the hub-managed relationship reflects Citi’s strategic presence in Ethiopia, supporting Ethiopian corporates and individuals in accessing U.S. dollars. 

Ethiopia is one of Citi’s 63 hub-managed countries worldwide, where the bank provides expertise and talent despite lacking a physical office.