Philippine Airlines, Citi and UK Export Finance have announced the successful closing of a new 12-year, UK Export Finance (“UKEF”) covered loan for Philippine Airlines to finance one Rolls-Royce Trent XWB-97 engine. Citi acted as the Sole Lead Arranger, and Facility Agent on this financing.
This deal marks the first export credit agency finance (“ECA”) backed financing raised by Philippine Airlines in over 12 years, with the last ECA financing also involving Citi as the financing partner.
Philippine Airlines is the flag carrier of the Philippines and is embarking on the latest stage of fleet modernisation with the delivery of nine Airbus A350-1000 aircraft. Philippine Airlines is also due 13 Airbus A321neo aircraft from 2026 in addition to refurbishing 18 A321ceo aircraft with new Business Class and Economy Class seats (the first of which was completed in September 2025).
The Trent XWB-97 engine that will power the Airbus A350-1000 aircraft is 15% more fuel efficient compared to previous generation Trent engines and is also quieter by design.
“This financing agreement with Citi and UKEF marks a significant step in our fleet modernisation and demonstrates the strength of our partnership with these institutions,” said Alvin Limqueco, Philippine Airlines Senior Vice President – Chief Supply Chain Officer. “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.”
Manish Bajaj, Citi Philippines’ Corporate Banking Head, said, “Citi is proud to support Philippine Airlines through this landmark UKEF-backed financing transaction, which demonstrates the strength of PAL’s long-term growth strategy and access to global funding markets. The transaction highlights Citi’s commitment to delivering innovative and strategic financing solutions for our clients, while reinforcing our partnership with the Philippines’ flag carrier through its next phase of growth and expansion.”
Khoa Huynh, Director, Citi Aviation Corporate Banking added, “This landmark transaction is testament to the close partnership between all three parties, powering Philippine Airlines into its next chapter. We are excited to facilitate Philippine Airlines’ growth and next-generation passenger experience, whilst embedding operational resilience with this engine supporting a new fleet type.”
Tim Reid, CEO at UK Export Finance said, “We are proud to have played a part in the first ECA-backed financing raised by Philippine Airlines in over 12 years. These new engines will drastically help to reduce emissions. This deal encapsulates UKEF’s vision to support UK exporters and jobs, drive local growth and create global impact.”
Started in 1927, the Philippines Graphic is the longest-running printed magazine of national circulation that provides relevant news and features and promotes Philippine literature.
 covered loan for Philippine Airlines to finance one Rolls-Royce Trent XWB-97 engine. Citi acted as the Sole Lead Arranger, and Facility Agent on this financing.){kind=link}