The Asian Development Bank has approved a $15 million financing package for Nauru 40997 Leasing Corporation, a wholly owned subsidiary of Naoero Air Corporation, to support Naoero Airlines’ acquisition of a preowned Boeing 737-800. The deal combines a $5 million ordinary-capital loan, a $5 million concessional loan from LEAP 2 and a reimbursable grant of up to $5 million from the bank’s Private Sector Window.
ADB is financing the aircraft replacement through its Wayfinder (Pacific) Program, which blends concessional capital to reduce project risk and draw private investment into the region. The new aircraft is set to replace an ageing jet in the airline’s fleet and is expected to improve fuel efficiency, lower maintenance costs, boost reliability and increase passenger capacity.
Naoero Airlines operates passenger and freight links between Naoero and the Federated States of Micronesia, Fiji, Kiribati, the Marshall Islands and Australia. The financing structure reflects the higher-risk profile of Pacific airline operations, where long-term commercial funding can be difficult to secure. The project also fits into ADB’s wider support for transport links in Naoero, where aviation remains central to regional connectivity and cargo movement.