KfW and HSH Nordbank arrange financing for Indian Airlines

09 Mar 2007

1

New Delhi: KfW IPEX-Bank and HSH Nordbank have been commissioned by the Indian Airlines to co-finance the first batch of 10, of a total of 43, Airbus A320-family aircraft. The 10 aircraft are due for delivery by March 2008.

The contracts were signed by Vishwapati Trivedi, chairman and managing director of Indian Airlines, Dr. Peter Klaus, chairman of the board of managing directors of KfW IPEX-Bank and Angela Behrend-Goernemann, deputy global head of transport finance at HSH Nordbank.

KfW and HSH Nordbank 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 limits the usage of the Indian government guarantee.

The deal involves total loans of more than $500 million with 12-year repayment tenure. The underwriters also envisage a syndication of the transaction in the international bank market.

Indian Airlines is a long-standing customer of KfW IPEX-Bank. The bank's Dr. Klaus said that the bank was pleased that it was selected for this important financing arrangement.

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