AfDB to arrange $500m loan for Ethiopian Airlines’ mega airport project
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AfDB to arrange $500m loan for Ethiopian Airlines’ mega airport project
By Dickson Omobola
Following the signing of the Letter of Intent, LoI, in March, Ethiopian Airlines Group, EAG, and the African Development Bank, AfDB, have signed a mandate letter appointing the Bank as Initial Mandated Lead Arranger, IMLA, for the financing of Ethiopian Airlines’ mega airport.
Under this Mandate Letter, AfDB would provide a loan of $500 million and lead the mobilisation of the remaining amount, for financing the development of the new airport in Bishoftu.
Speaking on the development, Ethiopian Airlines Group CEO, Mesfin Tasew, said: “We are pleased to partner with the African Development Bank in arranging the required financing for the development of this iconic aviation infrastructure. The signing of this mandate letter marks a decisive step toward realizing a world-class pan-African gateway that will boost intra-African trade, regional integration, tourism, and global connectivity. Ethiopian Airlines Group shall continue leading the enhancement of the aviation industry in the continent.”
On his part, President of the AFDB, Akinwumi Adesina, said: “This is a proud moment for African aviation and infrastructure. The signature of this mandate letter marks a decisive step toward realizing a world-class pan-African gateway that will boost intra-African trade, regional integration, tourism, and global connectivity.”
Meanwhile, the mega airport would serve as the future hub for all international passenger and cargo traffic, complementing Bole International Airport, which would retain its domestic operations. The airport will anchor an aerotropolis designed to stimulate regional development, enhance logistics capacity, and generate tens of thousands of jobs.
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