Philippine Airlines (PAL) has closed a new 12-year, UK Export Finance (UKEF) covered loan to finance one Rolls-Royce Trent XWB-97 engine, marking the flag carrier’s first export credit agency (ECA) backed financing in over 12 years.
Citi acted as the sole lead arranger and facility agent for the transaction, which reinforces PAL’s fleet modernization efforts.
The Trent XWB-97 engine will power the Airbus A350-1000 aircraft, nine of which PAL is expecting for its latest stage of fleet renewal.
The engine boasts 15-percent greater fuel efficiency compared to previous generation Trent engines and is also quieter by design, aligning with PAL’s commitment to operational excellence.
PAL is also due to receive 13 Airbus A321neo aircraft from 2026 and is currently refurbishing 18 A321ceo aircraft with new Business Class and Economy Class seats.
“This financing agreement with Citi and UKEF marks a significant step in our fleet modernization and demonstrates the strength of our partnership with these institutions,” said PAL senior vice president and chief supply chain officer Alvin Limqueco.
“By working closely with Citi and UKEF, we are able to acquire the advanced Rolls-Royce Trent XWB-97 engine, reinforcing Philippine Airlines’ commitment to operational excellence and world-class customer service,” he said.
Citi, which was also involved in PAL’s last ECA financing over a decade ago, expressed pride in supporting the carrier.
Citi Philippines corporate banking head Manish Bajaj said the landmark UKEF-backed transaction “demonstrates the strength of PAL’s long-term growth strategy and access to global funding markets.”
Citi aviation corporate banking director Khoa Huynh cited the collaborative nature of the deal. “This landmark transaction is testament to the close partnership between all three parties, powering Philippine Airlines into its next chapter,” he said.
UK Export Finance chief executive Tim Reid noted the environmental benefits of the financing. “These new engines will drastically help to reduce emissions,” he said, adding that the deal encapsulates UKEF’s vision to support UK exporters and jobs drive local growth and create global impact.
