Maravi

Zambian Airways to purchase 2 more Boeing 737

Zambian Airways to purchase 2 more Boeing 737
By Joan Chirwa
Saturday September 01, 2007 [04:00]

ZAMBIAN Airways has successfully acquired a syndicated loan of US $5.5 million (approximately K22.3 billion) for the purchase of two additional Boeing 737-200 aircraft. The financing, which has been jointly arranged by Investrust Bank Plc, Intermarket Banking Corporation and Development Bank of Zambia (DBZ), is expected to be paid back within five years.

During the signing ceremony held in Lusaka yesterday, Zambian Airways chief executive officer Mutembo Nchito said he was delighted that local banks have managed to partner and offer financing to the airline. Nchito said the airline had a lot of confidence in the local financial market, hence the reason to organise financing from the three local banks.

“The three banks (Investrust, DBZ and Intermarket) have been our solid partners,” Nchito said. “All the three banks have given Zambian Airways valuable advice on what it takes for us to make it in the aviation business.”

Nchito further said the company had managed to grow the number of its passengers to around 22,000 from 3,200 recorded about three years ago.

“This is a great development. We recognise that we need a great team to run the business and this cannot be possible without partners such as the banks,” Nchito said. “The company has continued to contribute to the growth of the tourism sector and hopes to contribute significantly to the country’s Gross Domestic Product (GDP).”

Investrust Bank managing director Friday Ndhlovu said the facilitation of a syndicated loan to Zambian Airways was proof that local banks could deliver positive results.

“As the lead arranger of the transaction and the main banker to Zambian Airways, Investrust wishes to thank all stakeholders who have made completion of this syndication possible,” Ndhlovu said. “A local bank has syndicated a deal without the involvement of overseas specialists and as such, the market had questions on Investrust Banks Plc’s capabilities to deliver. This occasion answers these concerns candidly.”

And DBZ acting managing director Richard Phiri said the deal facilitated by the three local banks would help in the enhancement of the tourism and aviation industries in the country.

“You will agree with me that after the demise of Zambia Airways, there has never been an airline that has been of equal standing,” said Phiri.

Intermarket Banking Corporation chief operating officer Mabvuto Chipata hoped the three banks would continue to co-operate in more such projects for the development of the country’s economy.

Labels: ZAMBIAN AIRWAYS

posted by MrK @ 3:26 AM