Go ahead and purchase Boeing: EXIM to India
Washington, Sep 20: The Export-Import Bank of the United States and the National Aviation Company of India Limited (NACIL, also known as Air India) held a signing ceremony to celebrate the conclusion of a 548.6 million dollars financing for NACIL's purchase of Boeing aircraft. Ex-Im Bank Chairman James H Lambright and NACIL Chairman and Managing Director Raghu Menon participated in the ceremony at Ex-Im Bank headquarters.
"We greatly value Ex-im Bank's contribution in partnering with Air India in our project to acquire 68 state-of-the-art aircraft from The Boeing Company", said NACIL's Menon. "Induction of these modern aircraft into our fleet will be a major step forward in making Air India a truly global airline through a significant expansion of our international network."
"The fast-growing Indian market offers enormous opportunities for US exporters in many sectors including transportation, energy and infrastructure development," said Lambright. "We're also pleased that India has taken advantage of the new benefits offered by its participation in the Cape Town Treaty." The Cape Town Treaty is an international treaty that facilitates the cross-border financing and leasing of aircraft, helicopters and aircraft engines. Ex-Im Bank reduces its exposure fee by one-third on asset-backed financings of new US-manufactured large commercial aircraft and spare engines for international buyers located in countries that ratify and implement the treaty.
Ex-Im Bank's exposure fee is the risk premium that the Bank charges for its export financing. As a result of ratifying and implementing the Cape Town Treaty, NACIL saved over 5 million dollars on financing costs on this one transaction. Standard Chartered Bank is the guaranteed lender on the transaction.