Ethiopian Airlines Group, Africa’s largest carrier, obtained a $450 million loan from Citigroup Inc. to buy five new Boeing Co. planes.
The loan will fund the purchase of three 737 Max aircraft and two 777 freighters, which will be delivered in December and increase the airline’s fleet to 150 planes, the company said in a statement on Tuesday.
The loan is part of the airline’s plan to order about 40 planes from Airbus SE and Boeing and nearly double its fleet to over 270 planes in 12 years.
“Fleet expansion being one of our strategic growth pillars, we will continue expanding and modernizing our fleet size so as to grow our business and reach new markets,” Ethiopian Chief Executive Officer Mesfin Tasew Bekele said in a statement.
Citigroup, the only US bank that offers correspondent banking in Ethiopia, lent the money as part of its strategy to expand its presence in Africa.
“Citi has been serving Ethiopian Airlines for many decades, and we are pleased to support its growth with financing,” said Akin Dawodu, Citigroup’s head of sub-Saharan Africa.
The airline has created Africa-wide and transcontinental networks flying to 135 international passenger and cargo destinations, including 63 African cities.
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