Indian contracts $ 500 million from KfW IPEX-Bank

By Staff
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Google Oneindia News

New Delhi, Feb 12 (UNI) Carrying forward its aircraft purchase exercise, national carrier Indian today signed a contract with German bank KfW IPEX-Bank, commissioning it for financing the purchase of the first batch of 10 A320 family aircraft to be delivered later this year.

Last year, Indian had placed an order for the purchase of 43 A320 family aircraft from Airbus, the first of which was delivered in October last.

Indian's Chairman and Managing Director Vishwapati Trivedi and Dr Peter Klaus, Chairman of the board of managing directors of KfW IPEX-Bank, signed the contract in Frankfurt under which KfW will lend 500 million dollars to Indian with a repayment tenure of 12 years.

Mr Peter Rieck, member of the board and deputy CEO signed for 50:50 joint underwriter HSH Nordbank. Subsequent syndication in the international bank market is envisaged by the underwriters.

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 250 million dollars.

Indian has an annual turnover of over one billion dollars and carriage of over eight million passengers. It operates to 54 destinations in India and 18 destinations in neighbouring regions like the Gulf and southeast Asia with over 300 flights every day. The airline is looking forward to inducting the remaining 42 Airbus aircraft on order -- 20 A321s, 18 A319s and four A320s -- nine of which are to join the present fleet of 74 aircraft in a staggered manner.

UNI

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