Nepal Airlines releases EOI for $1bn loan

Nepal Airlines (RA, Kathmandu) is on the hunt for over US$1b in fresh loans from suitably qualified lenders to fund aircraft acquisitions, construction of a hangar, and the servicing of existing loans, with the state-owned carrier issuing a request for expressions of interest (EOI) from lenders on January 23, 2024. According to the EOI documentation, the loan period will be 25 years, with extensions possible subject to mutual agreement. The airline requires a fixed interest rate for the entire loan period, with interest payable quarterly. Of the US$1.018b sought, US$565m will go towards acquiring new aircraft, US$415m will go towards managing existing loans, and US$38m will fund a hangar construction project. "The financing will be secured by (a) lien(s) over the assets, equipment, and project related to the financing," the documentation reads. Lender pre-qualification criteria include possessing the necessary licencing to undertake international financial transactions, having financed at least two projects worth US$1b or more in the past seven years, and having a net worth at least ten times the amount to be lent to Nepal Airlines.<br/>