GE aids ECA-backed financing for Atlas Air

July 23, 2018: GE facilitates an alternative financing
package for Atlas Air, a subsidiary of Atlas Air Worldwide Holdings, a leading
global provider of outsourced aircraft and aviation operating services. The
deal reached a milestone as funding under the framework facility hit the $100MM
mark. The finance solution is funded by
Apple Bank and guaranteed by UK Export Finance (UKEF), UK’s export credit
agency and partially reinsured by Export-Import Bank of the United States
(EXIM), the export credit agency of the US.

The deal, in aggregate, stands as one of the biggest export
credit agency (ECA) financing solutions for engine services in the aviation
sector. The financing is structured by
the parties to allow Atlas Air to draw funding in tranches as work is completed
– the current milestone reflects the fifth tranche to be drawn under this
programme.

This landmark financing programme utilises the long-standing
reinsurance agreement between UKEF and EXIM – the financing led by UKEF,
supports the provision of aircraft engine overhaul services performed at GE’s
Caledonian facility in Prestwick, Scotland, with EXIM providing reinsurance for
export of key technology from the US.

Guto Davies, managing director - global ECA Advisory and
execution leader, GE said: “We are excited to have been a part of the
initiative to create this financing solution for a strategic customer of GE.
This facility will enable overhaul of up to 39 engines for Atlas Air. We worked closely with the UK and US
governments and our aviation customer to develop an attractive solution to
finance this investment. This is a
perfect example of how we can bring private and public organisations to the
table to create innovative financial structuring solutions for our customers
that benefit both the UK and US aviation industries.”

Baroness Fairhead, UK minister of state for trade and export
promotion said: “I am delighted that the UK Government, through UK Export
Finance, is supporting this GE Caledonian contract, securing jobs and
investment in Scotland. It is a fantastic demonstration of the UK's world
leadership in the civil aerospace sector, which is creating significant global
demand for UK capability and expertise, and leading to opportunities that the
Department for International Trade is helping to turn into reality for UK
companies.”

Jeffrey Goettman, EXIM Executive vice president and chief
operating officer said: “EXIM Bank and Britain’s export credit agency, UKEF,
have a long, mutually beneficial history of co-operation in support of our aerospace
industries. We are pleased to co-finance American-made GE Aviation aircraft
engine components with UKEF. We look
forward to future co-financings with UKEF that sustain aerospace manufacturing
and employment in the US.”

William J Flynn, president and chief executive officer,
Atlas Air Worldwide said: “We are very pleased to participate in this
collaborative financing solution to support our engine overhaul programme. This
facility is a great example of our commitment to working with valued partners
to secure favorable and innovative financing for our business.

The financing supports an engine overhaul program for Atlas
Air and will see GE supply and install energy efficient Performance Improvement
Programme (PIP) kits to upgrade up to 39 GEnX-engines. UKEF played an instrumental role in the
structuring of this transaction which emphasises the depth of co-operation
between the organisations. The partnership was recognised in a wide-ranging
Memorandum of Understanding signed in 2015.