Mohamed_El Harmy

Afreximbank Grants $44M Aircraft financing facility to CIAF Leasing

Afreximbank, the African Export-Import Bank, has granted a US$44 million aircraft financing facility to CIAF Leasing, a company based in Egypt. The facility aims to strengthen CIAF Leasing’s leasing operations by enabling the acquisition of three Embraer E-190 aircraft. 

Helmy Hamza & Partners, the Cairo office of Baker McKenzie, served as the Egyptian legal counsel for Afreximbank in this transaction. The team was led by partner Mohamed Elharmy (pictured) with support from associates Ahmed Shehata and Nour Elhayatmy

Afreximbank, a Pan-African multilateral financial institution, has a mandate to finance and promote both intra- and extra-African trade. Over the past three decades, the bank has been at the forefront of providing innovative financing solutions that support Africa’s trade transformation, promote industrialization, and boost intra-regional trade, ultimately fostering economic expansion across the continent. 

This financing arrangement involves Afreximbank as the senior debt provider and the Brazilian National Development Bank (BNDES) providing an export credit funding line. The involvement of BNDES further enhances the capacity of CIAF Leasing, an African aircraft lessor. According to the terms of the facility, the loan will be utilized by CIAF Leasing for the acquisition of the aircraft, which will be leased to Egypt’s national carrier, Egyptair, and sub-leased to Air Cairo. 

CIAF Leasing was launched in 2009, as an aircraft lessor in Egypt. Initially formed by various Egyptian state-owned entities and Aviation Capital Group, the company focuses on operating and financially leasing narrow-body aircraft, as well as engaging in the financial leasing of smaller aviation-related equipment and assets. Currently, CIAF Leasing manages a portfolio of six aircraft.