THAI wins syndication for two new A330-300
Thai Airways International won a 137.8 million euro syndicated loan from Kasikornbank and two foreign banks, for the acquisition of two Airbus A330-300 aircraft.
KBank, the mandated lead arranger, loans 64.5 million euro while Credit Agricole Corporate and Investment Bank and Landesbank Hessen-Thuringen Girozentrale lend 41.6 million and 31.7 million, respectively.
THAI plans to use the new 299-seat aircraft on regional routes like Narita, Hong Kong, Shanghai and Taipei.
Vasin Vanichvoranun, executive vice president, said that KBank is the first Thai bank to join the syndication for aircraft acquisition. Before this, Thai banks have joined only in the acquisition of small or personal jets, through leasing method.
"Aircraft financing has limitations in Thailand, without the law to legalise aircraft pledging. Plus, the financing must be denominated in foreign currencies," Vasin said.
To minimise foreign exchange risk from the lending, KBank sets up the special purpose company overseas. This SPC will lend to THAI on behalf of the bank.