Syndicated term loan facility worth US$ 114.49m for Biman
Friday, 7 May 2010
FE Report
Eastern Bank Ltd (EBL) has arranged a syndicated USD term loan facility of US$ 114.49 million for Biman Bangladesh Airlines Ltd. to finance Pre-Deliver Payment (PDP) to purchase two brand new Boeing 777-300ER aircrafts.
The entire amount will be lent to Biman in the form of foreign currency, EBL officials said.
For the first time in the history of Bangladesh such kind of foreign currency loan has been arranged by the local commercial banks. Ten private commercial banks through their offshore Banking Units participated in the Syndicated Loan of which EBL Is the leading bank.
The other participating banks in the loan syndicate are: AB Bank Ltd, BRAC Bank Ltd, Dhaka Bank Ltd, IFIC Bank Ltd, Mutual Trust Bank Ltd, National Bank Ltd, Prime Bank Ltd, The City Bank Ltd and Premier Bank Ltd.
The loan agreement was handed over to Biman in a ceremony Thursday held at a local hotel. Minister for Civil Aviation and Tourism, Ghulam Muhammed Quader attended the ceremony as the Chief Guest.
He was accompanied by Governor of Bangladesh Bank Dr. Atiur Rahman, US Ambassador in Bangladesh James F. Moriarty, Chairman of Biman Bangladesh Airlines Air Marshal Jamal Uddin Ahmed (retd), Chairman, Eastern Bank Limited Mohd. Noor Ali.
Biman Managing Director & CEO Air Commodore M Zakiul Islam (retd), EBL Managing Director & CEO Ali Reza Iftekhar, Senior director of Boeing Anil K. Patel and Director International Sales J Miguel Santos were also present at the occasion.
G M Quader in his speech appreciated the participating banks for making this innovative transaction. He also stated that this is a glory not only for the commercial banks, but also for the country as a whole.
"Government is committed to make the national airlines a self dependent and vibrant airline," he said adding that purchasing of state-of-the art aircrafts in Biman's fleet would secure it grip on the country's aviation industry.
Dr. Atiur Rahman congratulated the officials of Eastern Bank Limited and other participating banks along with the Biman Bangladesh Airlines Ltd. for the successful closing of this deal.
"Our banks have gained such financial strength that they are capable of formulating such huge transaction," he said.
The central bank governor assured all-out support in such initiatives in further.
Burdened with its depleting fleet, Biman in 2008 signed a deal with the American aerospace giant Boeing to buy four 777-300ERs and four 787-8s aircraft valued at US$1.26 billion.
Boeing source said they would handover two of the two wide-body 777-300 ERs by October 2011, while the rest would be supplied in phases through 2020.
EBL Chairman, Mohd. Noor Ali expressed his gratitude towards the decision makers for the confidence and trust bestowed upon Eastern Bank Limited.
Ali Reza Iftekhar, EBL MD & CEO expressed his appreciation to all the partners for their wholehearted support towards achieving the financial close of this milestone transaction.
Eastern Bank Ltd (EBL) has arranged a syndicated USD term loan facility of US$ 114.49 million for Biman Bangladesh Airlines Ltd. to finance Pre-Deliver Payment (PDP) to purchase two brand new Boeing 777-300ER aircrafts.
The entire amount will be lent to Biman in the form of foreign currency, EBL officials said.
For the first time in the history of Bangladesh such kind of foreign currency loan has been arranged by the local commercial banks. Ten private commercial banks through their offshore Banking Units participated in the Syndicated Loan of which EBL Is the leading bank.
The other participating banks in the loan syndicate are: AB Bank Ltd, BRAC Bank Ltd, Dhaka Bank Ltd, IFIC Bank Ltd, Mutual Trust Bank Ltd, National Bank Ltd, Prime Bank Ltd, The City Bank Ltd and Premier Bank Ltd.
The loan agreement was handed over to Biman in a ceremony Thursday held at a local hotel. Minister for Civil Aviation and Tourism, Ghulam Muhammed Quader attended the ceremony as the Chief Guest.
He was accompanied by Governor of Bangladesh Bank Dr. Atiur Rahman, US Ambassador in Bangladesh James F. Moriarty, Chairman of Biman Bangladesh Airlines Air Marshal Jamal Uddin Ahmed (retd), Chairman, Eastern Bank Limited Mohd. Noor Ali.
Biman Managing Director & CEO Air Commodore M Zakiul Islam (retd), EBL Managing Director & CEO Ali Reza Iftekhar, Senior director of Boeing Anil K. Patel and Director International Sales J Miguel Santos were also present at the occasion.
G M Quader in his speech appreciated the participating banks for making this innovative transaction. He also stated that this is a glory not only for the commercial banks, but also for the country as a whole.
"Government is committed to make the national airlines a self dependent and vibrant airline," he said adding that purchasing of state-of-the art aircrafts in Biman's fleet would secure it grip on the country's aviation industry.
Dr. Atiur Rahman congratulated the officials of Eastern Bank Limited and other participating banks along with the Biman Bangladesh Airlines Ltd. for the successful closing of this deal.
"Our banks have gained such financial strength that they are capable of formulating such huge transaction," he said.
The central bank governor assured all-out support in such initiatives in further.
Burdened with its depleting fleet, Biman in 2008 signed a deal with the American aerospace giant Boeing to buy four 777-300ERs and four 787-8s aircraft valued at US$1.26 billion.
Boeing source said they would handover two of the two wide-body 777-300 ERs by October 2011, while the rest would be supplied in phases through 2020.
EBL Chairman, Mohd. Noor Ali expressed his gratitude towards the decision makers for the confidence and trust bestowed upon Eastern Bank Limited.
Ali Reza Iftekhar, EBL MD & CEO expressed his appreciation to all the partners for their wholehearted support towards achieving the financial close of this milestone transaction.