Nepal Airlines Corporation (NAC), trading as Nepal Airlines (RA, Kathmandu), is again seeking to borrow USD1.018 billion to service existing loans, acquire new aircraft, and build a hangar, according to an expressions of interest (EOI) notice the state-owned airline filed on September 13.
Subject to approval from the Nepalese government and other authorities, NAC says it will use USD415 million to service or retire existing loans, USD565 million to acquire an unspecified number of new aircraft, and USD38 million for the hangar project at Kathmandu's Tribhuvan International Airport. The airline requires a fixed interest rate for the entire 25-year term of the loan, with the funds secured by a lien over the assets related to the financing.
In January, ch-aviation reported NAC issuing an EOI for the same amount for the same purposes on the same terms. In March, the NAC re-issued the EOI due a lack of interest from potential lenders.
The current EOI is open to national and international banks, financial institutions, government entities, authorised agencies, and other parties with a corporate history going back at least seven years. In addition, the notice says the lender needs to be licenced to operate internationally or domestically to provide foreign loans in Nepal; be in compliance with international and national money laundering and terror financing protocols; have financed at least two projects amounting to USD1 billion in the past seven years; have a net worth worth of at least ten times the amount lent to NAC; and have verifiable liquid assets at least double the amount lent.
Responses to the current EOI campaign must be received at the NAC's Kathmandu offices by 1200L (0615Z) on October 28, 2024, with opening and initial scrutiny taking place 30 minutes later.
In its background notes, NAC says its two A320-200s and two (inactive) A330-200s provide safe, efficient, well-managed, and economical flights to ten international destinations. In addition, two inactive DHC-6-300s normally fly to 22 airports within Nepal. The airline says it is acquiring additional domestic and international aircraft per its ten-year business plan.
In addition to operating flights, NAC also provides ground handling services to its own carrier and other operators at Kathmandu Tribhuvan, Bhairahawa (Siddharthanagar), and Pokhara International airports.
