RwandAir secures Rwf6.5 bn loan

RwandAir has secured a $11.5m (Rwf6.5 bn) credit facility from Eastern and Southern African Trade and Development Bank (PTA Bank) that will help it to implement its five year development plan. The loan agreement that was signed on Monday is designed to help Rwanda’s national carrier to purchase two 737-800 planes from Boeing.
Finance and Economic Planning Minister, John Rwangombwa, exchanges documents with Dr Michael Gondwe, PTA’s president. (Photo/ Goodman)
Finance and Economic Planning Minister, John Rwangombwa, exchanges documents with Dr Michael Gondwe, PTA’s president. (Photo/ Goodman)

RwandAir has secured a $11.5m (Rwf6.5 bn) credit facility from Eastern and Southern African Trade and Development Bank (PTA Bank) that will help it to implement its five year development plan.

The loan agreement that was signed on Monday is designed to help Rwanda’s national carrier to purchase two 737-800 planes from Boeing.

“As Government, we are here to give full support to the national carrier in not only becoming a regional airline but also an international airline,” said John Rwangombwa, the Minister of Finance and Economic Planning.

Rwangombwa also added that Rwanda being a landlocked country, it needs RwandAir to link it to other parts of the world.

“So the deal is a huge milestone not only for the carrier but for the country and the region as a whole,” he said.

RwandAir’s management says that the two planes will be delivered in August and October 2011. Last year RwandAir secured $40m (Rwf22.7 bn) from PTA-Bank which was used to purchase two CRJ200 planes.

Michael Gondwe, PTA’s president, said that the bank is proud to be contributing to Rwanda’s economy. “The bank has extended a loan facility of $100m (Rwf56.8bn) to RwandAir and some hotels in Rwanda in a period of less than a year,” Gondwe said.

John Mirenge, RwandAir’s CEO, said that  the loan facility will help the carrier reach its target of  acquiring its own fleet of six planes by 2012.

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