Nauru Airlines gets USD $15 million financing for an additional 737-800 aircraft

The national airline of the Pacific Island nation of Naoero (Nauru), Nauru Airlines has secured financial assistance from the Asian Development Bank (ADB) to acquire an additional Boeing 737-800.

In a statement published on October 2, the ADB announced the signing of a USD $15 million financing package Nauru Airlines Corporation (NAC) subsidiary Nauru 40997 Leasing Corporation for acquisition of the 737-800. Processed through ADB’s Wayfinder (Pacific) Program, it comprises of a USD $5 million loan from ADB’s ordinary capital resources, a USD $5 million concessional loan from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), and a reimbursable grant of up to USD $5 million from the Private Sector Window of the Asian Development Fund.

With the financing package, Nauru Airlines will acquire a preowned aircraft to replace an aging aircraft to support its operations that provides passenger and freight air links between Nauru, the Federated States of Micronesia (FSM), Fiji, Kiribati, the Marshall Islands, and Australia.

“This first private sector investment in Naoero has been made possible by ADB’s Wayfinder initiative,” said Director General of ADB’s Pacific Department Emma Veve. “This blends the right mix of commercial and concessional finance to derisk private investment in smaller and more challenging Pacific markets, for which we are seeing early success. ADB is open for business and committed to working with Pacific businesses and investors to develop and finance more opportunities.”

“This fleet modernization marks an important step in strengthening the reliability and resilience of air connectivity across the Pacific,” said NAC’s Chairman of the Board Charleston Deiye. “Through ADB's innovative financing support, we are investing in a more efficient fleet that will better serve our passengers, support regional trade, and help communities remain connected when they need it most.”

Established in 1996, NAC is fully owned by the Government of Nauru. According to planespotters.net, the airline currently has a fleet of 6 all-Boeing 737 aircraft including 2 737-800s, 1 737-700, and 3 older 737-300s. NAC’s fleet have an average age of over 25 years, and some of the 737s features passenger and freighter versions.