ADB Signs $15 Million Financing Package to Support Naoero Airlines Fleet Upgrade

The Asian Development Bank (ADB) signed a $15 million financing package on 2 October 2026 with Nauru 40997 Leasing Corporation, a subsidiary of Naoero Air Corporation (NAC), to strengthen air connectivity and transport resilience in Naoero and neighboring Pacific island nations.

The financing package includes a $5 million loan from ADB’s ordinary capital resources, a $5 million concessional loan from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), and a reimbursable grant of up to $5 million from the Asian Development Fund's Private Sector Window. The agreement was facilitated under ADB’s Wayfinder (Pacific) Program, which utilizes blended concessional finance to de-risk and attract private investments in the region.

The funds will be used to finance Naoero Airlines' acquisition of a preowned Boeing 737-800 to replace an older aircraft. According to the ADB, the fleet update is intended to improve fuel efficiency, lower maintenance costs, boost passenger capacity, and increase overall service reliability. Naoero Airlines operates passenger and cargo routes connecting Naoero with Australia, Fiji, Kiribati, the Marshall Islands, and the Federated States of Micronesia.

Emma Veve, Director General of ADB’s Pacific Department, stated that the project represents the institution's first private sector investment in Naoero, enabled through the Wayfinder initiative's blended finance structure.

Charleston Deiye, Chairman of the Board of NAC, noted that the fleet modernization is an important step toward reinforcing air transport resilience across the Pacific, supporting regional trade, tourism, and essential travel.

NAC was founded in 1996 and is wholly owned by the Government of Naoero. The LEAP 2 fund involved in the package is managed by the ADB and backed by a $1.5 billion commitment from the Japan International Cooperation Agency.

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