960423

Air China signs

$84.8 mln aircraft

financing

HONG KONG: Air China has signed a US$84.8 million aircraft financing facility, said arranger Banque Nationale de Paris.

The pre-delivery facility has a tenor of 20 months.

Proceeds are to be used for the acquisition of three new A340-300 aircraft from Airbus Industrie ARBU.CN.

Pricing details of the facility were not available.

Arrangers are Banque Nationale de Paris and Banque Indosuez.

BNP said the Airbus acquisition was the first for Air China, which previously had only Boeing aircraft in its fleet.

BNP has been active in Airbus financing in the China market.

Apart from the financing for Air China, the bank also has co-arranged package financing for one A300-600 aircraft for China Northwest Airlines and three A340-300 aircraft for China Eastern Airlines.

Chinese Prime Minister Li Peng recently concluded a deal with Airbus for 30 A320 and three A340 aircraft.-Reuter