The U.S. Export-Import Bank has authorized a $117.5 million loan guarantee supporting exports of Boeing 737-800 planes to flydubai, a low-cost airline owned by the Dubai government.
The bank is guaranteeing a 12-year loan from the Private Export Funding Corp. It is the bank's first authorization supporting aircraft exports to flydubai.
"This financing is a first for Ex-Im Bank for this successful new carrier in the Middle East, and this export is a great opportunity for Boeing to expand its market reach in the United Arab Emirates," said Ex-Im Bank Chairman and President Fred. P. Hochberg, in a statement.
"We believed that it was the right time, in flydubai's third year of operation, to diversify the sources of funding for our aircraft. We are delighted to have the support of Ex-Im Bank and the Private Export Funding Corp. as we continue to grow, and we look forward to developing our relationship with them in the future," added Ghaith Al Ghaith, flydubai’s chief executive officer.
In business since 2009, flydubai operates a route network of more than 45 destinations across the Middle East, North Africa, the Indian Subcontinent, Asia, and Central and Eastern Europe.