KfW IPEX-Bank arranges Aircraft-Financing for Indian Airlines

15 Feb 2007 [06:16h]     Bookmark and Share

KfW IPEX-Bank arranges Aircraft-Financing for Indian Airlines

KfW IPEX-Bank arranges Aircraft-Financing for Indian Airlines

Frankfurt (ots) – KfW IPEX-Bank has been commissioned by Indian
Airlines to arrange the financing for the first batch of 10 of a
total of 43 Airbus A320-family aircraft to be delivered by March

The subsequent contracts were signed on monday in Frankfurt by Mr. Vishwapati Trivedi, Chairman and Managing Director of Indian Airlines and Dr. Peter Klaus, Chairman of the Board of Managing Directors of KfW IPEX-Bank and member of the Board of Managing Directors of KfW Bankengruppe. Angela Behrend-Goernemann, Deputy Global Head of Transport Finance, signed for 50/50 joint underwriter HSH Nordbank.

The commercial financing structure perfectly meets the requirements of Indian Airlines by giving value to Indian Airlines as the incumbent national carrier, maximising the Bank’s reliance on the aircraft asset as collateral and limiting the usage of the Indian government guarantee. The deal comprises total loans of more than USD 500 million and a repayment Tenure of 12 years. Subsequent syndication in the international bank market is envisaged by the underwriters.

Dr. Klaus emphasized the importance attached by KfW IPEX-Bank to the objective pursued by the Indian government to support the rapid expansion of the country’s transport system and infrastructure in order to better exploit India’s growth potential. He was particularly delighted for KfW IPEX-Bank to contribute to the continued growth of Indian Airlines, reaping the benefits of market growth following liberalisation: „It is a great pleasure to me that our valuable long standing customer Indian has chosen KfW IPEX-Bank to arrange this important financing. As a bank specialized in the financing of complex transport and infrastructure investments KfW IPEX-Bank is a committed partner in this field. As part of KfW Bankengruppe we have been active in India for more than 40 years and can offer comprehensive and specific know-how.“

He underlined that the bank intends to substantially expand its activities in India. „Within the next three years we want to increase our portfolio with India to approximately USD 3 billion.“ Dr. Klaus announced that KfW IPEX-Bank is about to set up a representative office in Mumbai for this purpose in the course of this year.

Dr.Trivedi said, „Indian and KFW have had a long association spanning over last two decades. In February 1986, Indian had signed a purchase agreement with Airbus Industrie for acquisition of 19 A320 aircraft during the period 1989-90. When Indian was looking for a financing arrangement for these aircraft in 1988, KfW readily came forward to extend financing to the extent of USD 250 million. We value our long standing association with KfW Bank and look forward to a continued mutually rewarding relationship in the years to come.“

Angela Behrend-Goernemann said: „We are very proud to have the opportunity to support Indian’s extension and we see this important transaction as the beginning of a long-term partnership. This project underlines the importance which we attach to the Indian market. As an international specialist in transport we will extend our activities in this region in the future as well.“

About KfW IPEX-Bank

Within KfW Bankengruppe KfW IPEX-Bank provides project and corporate finance and offers trade and export finance in Germany and abroad. Worldwide it conducts all market activities of KfW Bankengruppe that are done on commercial terms. It has been run as a legally dependent bank within KfW Bankengruppe since January 1, 2004 and as of January 1, 2008, will be separated into a legally independent subsidiary. In the year 2006 KfW IPEX-Bank made new commitments for a total of EUR 15 billion. It has Representative Offices in London, New York, Sao Paulo, Bangkok, Beijing, Istanbul and in Moscow.

Dela Strumpf,
Tel: +49(0)69 7431-2984, E-Mail: dela.strumpf@kfw.de

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