DUBAI, UAE, June 1, 2015 /PRNewswire/ --
Export Development Canada (EDC) and Ibdar Bank have been awarded the 2014 Africa Deal of the Year by AirfinanceJournal for their financing support to Ethiopian Airlines.
This transaction enabled Ethiopian Airlines to lease four Bombardier Q400 NextGen aircraft, with the nearly USD100 million trade being facilitated through senior secured debt funding from EDC and structured financing by Palma Capital with funding from their partner, Idbar Bank.
With annual business volumes nearing CAD100 Billion, EDC brings stability and reliability of capital to its international customers. As an experienced global financier, EDC has the expertise to undertake a variety of transactions involving Canadian supply of goods and services, and the flexibility to work with other sources of capital to deliver trade financing solutions.
"The Ethiopian Airlines financing with Palma Capital and Ibdar Bank is a good example of EDC's commitment to providing tailored financing to the Middle East and North Africa region," said Carl Burlock, Senior Vice President, Financing and Investment, EDC. "Air travel is expanding significantly in the Middle East and North Africa and so is the demand for regional airlines. Being selected as Airfinance's Deal of the Year for Africa is an important milestone for EDC as we look to grow our support of aerospace trade in the MENA region. Partners like Ibdar Bank are instrumental to EDC's efforts in the market."
"The deal sets a key precedent in the African market and wins this award for its structural innovation. It is interesting to see African airlines use these structures to attract Middle Eastern investors," comments Dickon Harris, Editor, Airfinance Journal.
Each year, Airfinance Journal celebrates the best of the industry with the Deals of the Year Awards, which recognize innovation and achievement in the trade finance market. Nominations are submitted by market participants, which are then evaluated by the Airfinance editorial team and a panel of judges with industry experience.
Airfinance Journal examines submissions based on deal value, signs of innovation and deal complexity, as well as risk factors including the tenor and challenges surrounding the execution of the deal.
The loan agreement was signed in June, 2014.
EDC is always looking to pursue opportunities and concentrate resources across multiple sectors in order to support the penetration of Canadian companies into the region.
About EDC
EDC is Canada's trade finance agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, call us at +1-888-434-8508 or visit http://www.edc.ca.
Phil Taylor, Export Development Canada, +1(613)598-2904, ptaylor@edc.ca
