MIAT successfully finalizes long-term financing of new BOEING 767-300ER aircraft

In accordance with ‘Action Plan of the Government of Mongolia for 2012- 2016’, ‘State Policy to be Adhered in Civil Aviation Sector Until 2020’, and related resolutions issued by the Cabinet in 2013, MIAT Mongolian Airlines (MIAT) successfully finalized long-term financing of its newly purchased Boeing 767-300ER aircraft from the Boeing Company of the United States on 24 December 2013, which was delivered in May of 2013.

The Netherland’s ING Bank N.V., together with its wholly-owned subsidiary ING Capital LLC, solely
arranged the USD 121.4 million refinancing of the aircraft, guaranteed by the Ministry of Finance of Mongolia. The three-tranche financing package consists of a 10-year senior loan guaranteed by the Export-
Import Bank of the United States (Ex-Im Bank), a 7-year junior loan, and a 5-year commercial note. From
the proceeds, MIAT refinanced its outstanding bridge loans which were obtained from domestic banks.

The deal marks one of the country’s largest ECA-guaranteed transactions and Ex-Im Bank’s first
significant transaction in Mongolia, as well as MIAT’s first direct aircraft purchase from the manufacturer.
It is important to note that the borrower needs to meet the requirements set by the Ex-Im Bank
in order to obtain the Export-Import Bank Guaranteed financing for the aircraft. Thus, the lender may provide long-term financing at low interest rate to the borrower.

MIAT is pleased to become the first airline company to receive such guarantee and funding of this type
in Mongolia. Moreover, MIAT is proud to have played a critical task in opening the gate for attractive
financing opportunities in Mongolia’s strategically significant sectors. ING Bank was the first international
bank to invest in Mongolia’s growth by establishing a representative office in 2008.

The Bank provides domestic and international clients with access to a range of products and services in
project finance, trade and commodity finance, structured export finance, debt capital markets and corporate finance. ING Bank has also been involved in several syndicated loan transactions and Mongolian international bond issuances.