Biman Bangladesh Airlines Ltd has sought a total of $109m as loans from financial institution to get delivery financing for the two Boeing 737-800 aircraft.
The state-owned Airlines has invited two requests for proposal (RFP) from financial institutions for a syndicated loan (senior loan).
One RFP is for $89m and another for $20m.
In 2008, Biman signed an agreement with US-based aircraft manufacturer company Boeing to purchase 10 aircraft worth $2.5bn to strengthen its fleet.
Boeing already delivered to Biman four Boeing 777-300 ER as per the agreement.
US Exim Bank is the main financier to the purchase of all the aircraft. Eighty five per cent of the required funds, based on the guarantee, will be available from the bank.
The national flag carrier Biman also planned to borrow the remaining portion of money from a consortium of banks.
According to RFPs, financing should be in US dollar for a 12-year term.
The loan will be supported by a guarantee from the government of Bangladesh for 12 years from the respective aircraft delivery dates.
The proposal or offer should be submitted by 30 July 2015 addressed to controller of accounts of Biman, according to the RFP.
Biman has reached an agreement with the Boeing company for the purchase of two Boeing 737-800 aircraft. which are scheduled to be delivered in November and December 2015.
Kyle Haywood, managing director and CEO of Biman, told Dhaka Tribune that they highly expect to see interested parties.
He said there was no reason of not happening that. In 2010, a syndicate of nine local banks gave Biman a loan of $114.75m for purchasing the two Boeing 777-300 ER aircraft from Boeing company.
In line with the agreement, Biman is re-paying Boeing every month for buying the planes.
This was the first time Biman is buying aircraft without any political or government interference since its birth in 1972.
This is said to be a turn-around for Biman, the struggling, loss-making national carrier that became a public limited company in July last year.
Boeing is supposed to supply Biman another two Boeing 787 (Dreamliner) aircraft in 2019.
Bangladesh national airlines has eight aircraft in its fleet -- four Boeing 777-300 ER, two Airbus, two Boeing 777-200 ER, two Dash 8 Q 400 and two 737. Of those, six have been taken on lease.
