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Vietnam Airlines Receives Preliminary Commitment for Over US$400 Million in U.S. Government Guaranteed Financing for Four Boeing 787 Aircraft and Engines

Posted on: Wednesday, 8 November 2006, 15:00 CST

HANOI, Vietnam, Nov. 8 /PRNewswire/ -- Vietnam Airlines Corporation of Hanoi, Vietnam has received preliminary approval from the Export-Import Bank of the United States ("Ex-Im Bank") for financing support in excess of US$400 million to support the acquisition of four Boeing 787-8 aircraft and engines, which will be operated by Vietnam Airlines.

The decision was made by Ex-Im Bank's Board of Directors and announced in Hanoi by U.S. Ambassador to Vietnam, Michael W. Marine.

"I am extremely pleased to announce Ex-Im Bank's approval of this preliminary commitment to finance Vietnam Airlines' acquisition of four state- of-the-art, U.S.-manufactured Boeing aircraft," Ambassador Marine said. "This transaction will facilitate increased business and leisure travel to and from Vietnam, thereby contributing to the further economic growth of Vietnam. It's a win for both countries."

Vietnam Airlines, the national flag carrier of Vietnam, is a state-owned enterprise, which was formed in 1989. Vietnam Airlines flies both domestic and international routes.

In 2003 and 2004, Ex-Im Bank financed four Boeing 777-200ER aircraft for Vietnam Airlines.

"Our experience with Vietnam Airlines has been very positive," said James H. Lambright, Ex-Im Bank president and chairman. "We are looking forward to receiving Vietnam Airlines' final application and hope, in the future, to finance additional U.S.-manufactured aircraft for Vietnam Airlines and to finance the sale of other U.S. goods and services to other companies in Vietnam."

Ex-Im Bank believes that the Boeing 787 aircraft is a good choice for Vietnam Airlines and is worthy of Ex-Im Bank financing because the aircraft has been well-received by both airlines and the aircraft financing industry and will set a new industry standard for twin-aisle long range aircraft, with its lightweight composite structure, fuel efficient engines, larger windows, and enhanced passenger comfort. Since its launch in April 2004, the Boeing 787 aircraft has accumulated 455 orders and commitments from 36 airline and leasing customers around the world, making the Boeing 787 aircraft the most successful commercial airplane launch in history. Vietnam Airlines and Boeing finalized the order for the four Boeing 787-8 aircraft covered by the preliminary commitment in November 2005.

Although U.S.-value added goods and services represent the majority of the aircraft and engines in this transaction, there is expected to be a material amount of Japanese manufactured components in the Boeing 787 aircraft and, therefore, the Japanese export credit agency, Nippon Export and Investment Insurance ("NEXI"), has also issued its preliminary commitment to co-finance the Japanese content on these Boeing 787 aircraft.

The preliminary commitment issued by Ex-Im Bank is made in response to a preliminary application for financing and, although non-binding, provides an indication that Ex-Im Bank is interested in financing the type of transaction described in the application. Final approval must follow receipt of a final commitment application, review by staff, and final action by Ex-Im Bank's Board of Directors.

Ex-Im Bank, the official export credit agency of the United States, is in its 72nd year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance and direct loans. In fiscal year 2005, Ex-Im Bank authorized nearly $14 billion in transactions supporting almost $17.9 billion of U.S. exports. More than $2.6 billion of these authorizations, representing 2,617 transactions, directly supported U.S. small businesses as primary exporters. For more information, visit http://www.exim.gov/

Export-Import Bank of the United States

CONTACT: Phil Cogan of Export-Import Bank of the United States(Washington, DC), +1-202-565-3200; or U.S. Embassy (Hanoi) Public AffairsSection: 84+4-8314580

Web site: http://www.exim.gov/

Source: PRNewswire

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