The African Export-Import Bank (Afreximbank) has granted Egypt-based CIAF Leasing a $44 million aircraft financing facility. This funding aims to strengthen CIAF’s leasing operations by enabling the acquisition of three Embraer E-190 aircraft. The transaction involves Afreximbank as the senior debt provider, while the Brazilian National Development Bank (BNDES) offers an export credit funding line. The loan has been utilized by CIAF for the purchase of the aircraft, which will be leased to Egypt’s national carrier, Egyptair, and subsequently sub-leased to Air Cairo.
Mrs. Kanayo Awani, Executive Vice President of Intra-Africa Trade Bank at Afreximbank, emphasized that the bank’s involvement in this transaction underscores its commitment to supporting Africa’s aviation sector. The aviation industry plays a crucial role in generating employment, facilitating trade, promoting tourism, and fostering economic activities across the continent.
“Afreximbank, under its Intra-African Trade strategic pillar “Deliver”, recognizes the importance of a strong and effective African aviation market in realizing the objectives of the African Continental Free Trade Agreement (AfCFTA) and is committed to working with other aviation industry stakeholders to facilitate the continued investment and ongoing reforms which the sector critically needs,” said Mrs. Awani.
Helen Brume, Director of Project and Asset Based Finance at Afreximbank, highlighted the challenge faced by many African airlines in accessing competitive aircraft leasing terms. She emphasized that the provided facility offers Afreximbank an opportunity to assist the growth of CIAF Leasing as an African lessor and support their endeavors.
Jose Luis Pinho Leite Gordon, Director of Product Development, Innovation, and Foreign Trade at BNDES, acknowledged the strategic partnership between BNDES and Afreximbank as crucial for boosting exports of aircraft and other Brazilian products. This partnership serves as a significant avenue to enhance business opportunities on the African continent.
CIAF Leasing, established on June 16, 2009, is an aircraft lessor initially formed by various Egyptian “state-owned” shareholder entities and Aviation Capital Group. Its primary focus lies in operating and financial leasing of narrow-body aircraft, along with financial leasing of smaller-ticket aviation-related equipment and assets. Currently, the company manages a portfolio of six aircraft.
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