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El Al gets $120 mln loan from Israeli banks for Boeing 787 purchase

Israel's Bank Hapoalim stated on Wednesday it was leading a group to fund El Al Israel Airlines purchase of the carrier's 17th Boeing 787 Dreamliner airplane.

In the past, El Al - which has an all Boeing fleet - has utilized foreign banks to fund its airplane procurements.

But Chief Financial Officer Yancale Shahar said El Al looked for to support the Israeli economy and services in Israel, while deepening the participation of Israeli banks in El Al's funding activities.

Hapoalim, among Israel's 2 largest banks, together with participation from Mizrahi Tefahot Bank will provide El Al $120 million for the purchase of its latest 787-9 airplane. The loan is for 12 years with El Al able to utilize the funds within two years.

Bank Hapoalim will continue to provide credit to companies and entities in the economy to fund their business expansion, stated Oren Cohen, the bank's head of business finance.

El Al presently flies 12 Boeing 787-9s and four 787-8s and is expected to get 2 more Dreamliner aircraft on lease in 2026. It also has actually signed an arrangement to acquire 3 more Boeing 787-9 and has an option to acquire as much as 6 more.

Previously this year El Al signed an offer to buy 20 short-haul Boeing 737 MAX airplane, with an alternative for approximately 11 more in an offer worth up to $2.5 billion.

Recently, El Al reported record earnings and income for the third quarter, buoyed by its near-monopoly after numerous foreign airlines cancelled flights due to conflict in the area.

Business authorities state all flights are complete and it has not had the ability to broaden its capability.

(source: Reuters)