RwandAir acquires $40 million loan facility

Rwanda’s national carrier RwandAir, has received a loan facility worth $40 million (Rwf22.8 billion) to support the carrier’s development plans. The loan is to be secured from the Eastern and Southern African Trade and Development Bank (PTA). According to officials the loan will be financed in a period of 10 years. Gerald Zirimwabagabo, the RwandAir boss said over the weekend that the bounty will help rebuild the company by acquiring two CRJ200s which are expected to arrive in the first weeks of December. “This is a huge milestone for RwandAir and the country as a whole, this gives us confidence and to our clients this is the beginning of the company’s growing,” he explained. Michael Gondwe PTA’s President said that the bank is proud to be contributing to Rwandan’s economy and it’s a historic beginning of a long journey between PTA and RwandAir that has started to help the carrier to have its own aircrafts. “It is a long journey indeed because were the carrier is coming from and the aspirations to make an airline which is a show case of excellence not just in Rwanda but in the region,” Gondwe added. Eastern and Southern African Trade and Development Bank provides a range of financial services primarily in Burundi. The company offers various project finance products, including loans and lines of credit, as well as guarantees to facilities obtained from other lenders or suppliers. It also provides trade finance services, such as issuance and confirmation of letter of credit, pre-shipment or post-shipment loans, syndicated lending, asset based lending and securities backed loans. The development comes a week after the national carrier signed a contract will its first ever two pilots. It is also after the carrier terminated its contract with JetLink, a Kenyan based company following the latter’s aircraft crash last month at Kigali International Airport in which one passenger died. The carrier has been wet leasing two 50 sitter CRJ planes from JetLink. The carrier also is in negotiations of acquiring two planes a Boeing 737 and another Boeing 800 series, with a capacity to carry between 130 and 160 passengers. Both planes will be available in mid-2011. Ends

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RwandAir acquires $40 million loan facility