KfW and HSH Nordbank arrange financing for Indian Airlines

Indian Airlines has commissioned KfW IPEX-Bank and HSH Nordbank to finance the first batch of 10 of a total of 43 Airbus A320-family aircraft to be delivered by March 2008. The subsequent contracts were signed by Vishwapati Trivedi, chairman and managing director of Indian Airlines and Dr. Peter Klaus, chairman of the board of managing directors of KfW IPEX-Bank, Angela Behrend-Goernemann, deputy global head of transport finance at HSH Nordbank. HSH Nordbank and KfW are co-underwriters of the transaction.
According to KfW, the commercial financing structure maximises 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 $500 million and a 12-year repayment tenure. The underwriters envisage a syndication of the transaction in the international bank market.
The deal benefits from 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," says Dr. Klaus.
06/03/07 Airfinance Journal, UK

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Categories: Foreign Mar 2007, indian mar 2007