US Exim Bank may give loan to SpiceJet for aircraft buy

Mumbai: US Exim Bank, the trade finance institution supported by the US government, may extend credit lines to SpiceJet, the low-cost air carrier, for its maiden purchases of Boeing aircraft.
“We are in preliminary discussions with SpiceJet to finance their proposed purchase of two new Boeing Aircraft,” US Exim chairman Fred P HoghBerg told media here on Friday. However, he refused to share more details. The Delhi-based air carrier which started operations in 2005, has a fleet of 20 lease aircraft. The deal to purchase two new aircraft is expected to be completed by 2011/12, he said.
With this deal, the trade finance institution will have exposure in three airline companies in India. It has given credit lines to Air India and Jet Airways. Recently, Mr HoghBerg met Union civil aviation minister Praful Patel to discuss ways to boost business in the Indian aviation sector.
US Exim’s India exposure is around $5 billion, a large part of which is in aviation. “One of the reasons for this visit is to expand our presence beyond Aviation. We are looking at food security, energy, road construction among others. We have had specific discussions with seven solar power companies,” said the Exim chief.
28/05/10 Economic Times

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Categories: spicejet May 2010