Indian gets $500-m loan from KfW Bank

New Delhi: State-owned carrier Indian on Monday signed a contract with Germany-based KfW IPEX-Bank for a loan of $500 million (about Rs 2,250 crore) to finance the acquisition of 43 Airbus aircraft. The airline has commissioned the bank to finance the first batch of 10 aircraft.
The loan will have a repayment tenure of 12 years, Indian said in a release here. Indian had placed an order for the purchase of 43 Airbus aircraft last year, the first of which was delivered in October 2006. The public sector airline will use these aircraft to extend its network beyond south-east Asia and the Gulf region.
Indian CMD V Trivedi and Peter Klaus, chairman of the board of managing directors of KfW IPEX-Bank, signed the loan contract in Frankfurt on Monday. The KfW bank has also signed for a 50:50 joint underwriting agreement with the Germany-based HSH Nordbank.
13/02/07 Economic Times

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Categories: foreign feb 2007, indian feb 2007