Ex-Im Bank Approves $1.1 Billion in Financing for U.S.-Manufactured B737-900ER Aircraft to Indonesia's Lion Air Transaction To Support an Estimated 7,300 American Jobs
WASHINGTON, March 5, 2013 /PRNewswire/ -- The Export-Import Bank of the United States (Ex-Im Bank) has approved a final commitment of $1.1 billion to finance the export of a fleet of Boeing 737-900ER (extended range) aircraft with CFM International aircraft engines to Lion Air, the largest privately owned airline in Indonesia. The aircraft will be delivered to Lion Air, Malindo Airways (Malaysia) and Batik Air (Indonesia).
The transaction will support an estimated 7,300 jobs at Boeing's manufacturing facilities in Renton, Wash., and its suppliers in numerous states across the country.
"Ex-Im Bank is pleased to support part of Lion Air's historic purchase order of Boeing extended-range aircraft. This is a tremendous opportunity for American exporters and will help to sustain thousands of jobs in the U.S. aerospace industry for years to come," said Ex-Im Bank Chairman and President Fred P. Hochberg.
The authorization is a final commitment of a preliminary offer of financing that the Bank approved in 2011. Ex-Im Bank is providing a guarantee of financing provided by Apple Bank for Savings in New York, N.Y. Additional funding may be provided by capital-markets investors via an Ex-Im Bank-guaranteed bond.
The financing will support a portion of Lion Air's outstanding orders for B737-900ER aircraft, which includes 230 Boeing 737 aircraft ordered in November 2011 – the largest commercial aircraft order in aviation history.
"We're proud that Lion Air has put its faith in the 737-900ER by being the launch customer and largest operator of the type," said Dinesh Keskar, senior vice president of Asia Pacific and India Sales, Boeing Commercial Airplanes. "Lion Air recognizes the business value and success that comes from investing in a quality, U.S.-built product. Ex-Im Bank's financing support allows us to compete on the merits of our product and not be disadvantaged by financing offered by our competitors."
Headquartered in Jakarta, Lion Air provides passenger service throughout Indonesia and to other countries in Southeast Asia and Saudi Arabia. The region covered by the Association of Southeast Asian Nations (ASEAN) has more than 550 million people and is among the fastest-growing aviation markets in the world.
Lion Air President and CEO Rusdi Kirana noted, "This substantial final commitment reinforces the invaluable relationship that we enjoy with the U.S. Ex-Im Bank and positions the Lion Group and Transportation Partners for future growth across the ASEAN region."
Boeing Commercial Airplanes is headquartered in the Puget Sound region of Washington State, and has U.S. manufacturing facilities in Renton, Everett, Auburn and Fredrickson, Wash.; Charleston, S.C.; Portland, Ore.; and Salt Lake City, Utah. Boeing employs more than 80,000 U.S. workers in commercial aircraft manufacture and related operations.
About Ex-Im Bank
Ex-Im Bank is an independent federal agency that creates and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (FY 2008 through FY 2012), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved nearly $35.8 billion in total authorizations in FY 2012 – an all-time Ex-Im record. This total includes more than $6.1 billion directly supporting small-business export sales – also an Ex-Im record. The Bank authorized approximately $11.5 billion to support exports of U.S.-manufactured large commercial aircraft in FY 2012.
Ex-Im Bank's total authorizations in the last fiscal year are supporting an estimated $50 billion in U.S. export sales and approximately 255,000 American jobs in communities across the country. For more information, visit www.exim.gov.
SOURCE Export-Import Bank of the United States