June 13, 2017
After loan agreement of Rs12 billion with Employees Provident Fund (EPF) on Sunday, NAC now has finalized another loan of Rs12 billion with Citizen Investment Trust (CIT) this Monday to purchase two wide-body Airbus A330s.
NAC will pay an interest of 9% each to EPF and CIT until they initiate commercial operation after acquiring two A330s. The loan is expected to be cleared by NAC in a span of 15 years and Nepal Government will act as a guarantee.
The sales and purchase agreement for two wide-body Airbus A330-200 was signed by NAC and AAR Corp on April 7, 2017 which became the historic day in Nepali aviation industry. Due to the long processing time of obtaining loan, NAC requested AAR Corp (the supplier of A330s) to extend initial payment deadline.
NAC’s total debt will increase to Rs34 billion as the corporation already took loan of Rs10 billion in 2015 to buy two Airbus A320-200 from EPF. Currently, NAC is operating international flights with its two Airbus A320 and a Boeing 757 aircraft. The corporation is also set to wet lease one of A319/A320/A321 aircraft while it is about to auction one of its vintage Boeing 757s.