Avianca Secures $300 Million Engine MRO Financing Backed by Brazil’s ABGF

Avianca has secured up to $300 million in financing to support CFM56 engine maintenance at GE Aerospace’s Celma facilities in Brazil, introducing a new export-credit structure for aviation MRO services in the country.

Citibank arranged the financing, which is supported by export credit insurance provided by the Brazilian Agency for the Management of Guarantee Funds and Guarantees (ABGF). The structure is the first under the program to finance aircraft engine maintenance services for a non-Brazilian airline.

The facility will fund maintenance, repair and overhaul shop visits for CFM56 engines in Avianca’s fleet, providing the Abra Group carrier with additional liquidity and flexibility to execute its engine maintenance program.

The transaction also expands the use of Brazilian export-credit support beyond manufactured aerospace products to high-value aviation services, with GE Aerospace performing the underlying work domestically.

GE Aerospace’s Celma operation is its principal engine overhaul platform in Latin America, with facilities in Petrópolis, Rio de Janeiro and Três Rios. The Brazilian business performs approximately 25% of GE Aerospace’s internal engine maintenance work globally.

For Avianca, the financing creates a dedicated source of capital for engine shop visits as the airline and parent Abra Group focus on fleet reliability, maintenance planning and greater operational synergies across the group.