Nepal Airlines reissues $1b loan EOI after lack of interest

A failure by financial institutions to respond en masse to its January 2024 request for expressions of interest (EOIs) to lend it more than US$1b has caused Nepal Airlines to reissue the EOI. "The notice has been reissued, while all the previously received sealed EOI documents have been kept unopened," the cover note accompanying the reissue reads. As ch-aviation previously reported, Nepal Airlines is seeking around US$415m to cover existing loan liabilities, US$565m to acquire new aircraft, and US$38m to construct a hangar. The total sought is US$1.018b, and the airline notes that the spending on the three items remains subject to approval from the Nepalese government and other relevant authorities. The EOI documents, which remain unchanged from January, reveal the airline is looking for a 25-year loan with the option to extend, a fixed interest rate regime for the duration of the loan, and an agreement to make quarterly repayments in line with the local calendar. The documentation suggests lenders secure their loans with liens over the resultant new assets and infrastructure.<br/>