30 April 2004 12:29
IFC TO LEND SIBERIA AIRLINES $25 MLN
NEW YORK. April 29 (Interfax) - The International Finance Corporation (IFC) will issue a $25 million long-term loan
to Siberia Airlines to refinance existing short and medium-term loans assumed earlier by the airline to finance
acquisition and refurbishment of aircraft, to increase its working capital, and to expand its route network, the IFC
said in a press release.
IFC's financing addresses a central constraint to the airline's
growth - an absence of long-term funding in the Russian market.
The investment agreement was signed today at the New York Airfinance Conference by Francisco Tourreilles, IFC's
Director of Infrastructure Department, and by Vladislav Filev, Director General of Siberia Airlines.
Internationally, aircraft financing is generally available for tenors of 12 years, while Russian banks lend to the
industry for up to 3-5 years.
Siberia Airlines carried 608,200 passengers in the first quarter of 2004 - 26.2% more than in the same period of last
year. Siberia is Russia's biggest domestic passenger flight operator.
Natalya Fileva, the first deputy general director, owns 56.87% and the state 25.5% of the shares.
[Interfax] |
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