Israeli carrier El Al Airlines will receive more than US$190 million in financing guarantee from the US Export-Import Bank (Ex-Im) to help support its Boeing 737-900ER acquisition.
The four aircraft were ordered from Boeing in March 2011 and will be delivered to El Al between October 2013 and July 2014. El Al has six 737-900ERs on order. It initially ordered four of the type in March 2011 and then added two more in August 2012.
The aircraft will be used for expansion and to replace some of El Al’s Boeing 757s.
El Al Chief Financial Officer Nissim Malki welcomed the deal and confirmed the money would be used to support its 737-900ER purchase: "We have signed an agreement to purchase aircraft, with excellent conditions. As part of the Company's activities in seeking financing for aircraft purchases, Management has succeeded in reaching a financing agreement with a foreign bank which will offer a loan of $190 million to purchase four 737-900 aircraft which are due to enter into service beginning October 2013, to July 2014.
"The transaction is based on guarantees from EXIM, the Export-Import Bank of the United States The transaction has innovative characteristics as a result of the issuance of the guarantees in American financial markets within a period of one year - a substitute for the loan from the foreign bank. Malki added that "This financing once again demonstrates the Company's special standing in international financial markets and its ability to create innovative and competitive financing solutions in place of standard conditions."