Indian signs MoU with ICICI for purchase of aircraft

New Delhi, May 7 (UNI) ICICI Ltd, India's second largest private sector bank, has signed a memorandum of understanding (MoU) with Indian for funding of the pre-delivery advance payment (PDPs) for acquisition of aircraft.

The signing of this MoU is a first step towards meeting the country's aircraft acquisition programme. This will allow Indian to step up growth, expand its market and further improve the quality of its product besides replacing some of its existing Boeing 737 and A300 aircraft.

Earlier, in February this year Indian had signed an agreement with Airbus Industries for the purchase of 43 airbus A320 family aircraft-comprising 19 A319s,4 A320s and 20 A321s at an estimated cost of 2 Billion Dollars.

The funding arrangement for PDP would be a syndicated External Commercial Borrowing (ECB) amounting to 152 Million US dollars, with ICICI Bank acting as a sole arranger and underwriter and would be spread over from June this year to January 2010.

The ICICI Bank was short listed in a competitive bidding process wherein several nationalised, private and foreign banks participated. Indian has been able to tie up for this funding without the requirement of any gurantee from Government. Indian would tie up for long term funds with the support of European Export Credit Agencies (ECAs) to complete the acquisition process.

The agreement was signed by Dr Vishwapati Trivedi -Managing Director Indian and Ms Kalpana Morparia, Joint Managing Director of ICICI Bank Ltd.

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