J.P. Morgan and Biman in USD 277 Million Financing Deal for Purchase of Two Aircraft
HONG KONG, - J.P. Morgan announced today that it has provided a USD 277 million financing facility to Biman Bangladesh Airlines Limited (“Biman”) to support the airline’s long-term, strategic expansion plan.
Through the facility, Biman, which is 100% owned by the Government of Bangladesh, will purchase two new Boeing aircraft to service an expanding domestic and international network of routes. This is the first aircraft delivery arising from Biman’s 2008 order placed with Boeing for 10 aircraft over the next decade. Guaranteed by the Export-Import Bank of the United States (“U.S. Ex-Im Bank”), the 12-year loan facility will be repaid quarterly. J.P. Morgan has almost 50 years’ experience in handling U.S. Ex-Im Bank guaranteed transactions, and is one of the world’s largest providers of aircraft financing through U.S. Ex-Im Bank.
Muhammad Zakiul Islam, Managing Director and CEO of Biman, said: “J.P. Morgan’s proven track record in providing aircraft financing and their comprehensive end-to-end financing solution were key factors in our decision to partner with them. Throughout this process, their trade finance team consistently provided advice when we needed it and backed this up with an efficient and effective execution.”
Sazzad Anam, Head of Financial Institutions, Bangladesh, J.P. Morgan Treasury Services, said: “Following the launch of our representative office in October last year, we have focused on providing our Bangladesh clients with even greater access to J.P. Morgan’s comprehensive suite of global solutions. We look forward to strengthening our partnership with Biman as they continue to ramp up their expansion.”
Adeline Kow, Head of Export Finance Advisory, Asia Pacific, J.P. Morgan Treasury Services, said: “As this dynamic region continues to grow and develop, we are seeing a surge in interest from clients across all sectors seeking structured trade finance solutions. Many companies, particularly those based in emerging and frontier markets, are aggressively expanding their business and seeking cost effective, large scale funding to facilitate their strategic growth plans.”
J.P. Morgan Treasury & Securities Services (“TSS”), which comprises the Worldwide Securities Services and Treasury Services businesses, provides solutions to institutional and corporate clients across the region. In line with the firm’s aggressive regional growth plans, J.P. Morgan last year hired an additional 600 financial professionals across the Asia Pacific region, expanding its local on-ground presence, enhancing its range of market leading products and elevating its client servicing capabilities.
About Biman Bangladesh Airlines Ltd.
Founded in 1972, Biman Bangladesh Airlines Ltd. (“Biman”) is 100% owned by the Government of Bangladesh. A member of the International Air Transport Association (“IATA”), Biman operates an international network spanning 19 destinations in Asia and Europe through its fleet of 11 aircraft. In 2010-11, the airline carried a total of 1.62 million passengers and 32,838 tons of cargo. Having placed the single largest order in its history of 10 new Boeing Aircraft, substantial growth in fleet size, passenger and cargo uplift and destinations is expected. The airline is IOSA registered.
About J.P. Morgan Treasury Services
J.P. Morgan’s Treasury Services business is a full-service provider of innovative cash management, trade, liquidity, commercial card and escrow services -- specifically developed to meet the challenges treasury professionals face today. More than 135,000 corporations, financial institutions, governments and municipalities in over 180 countries and territories entrust their business to J.P. Morgan. J.P. Morgan Treasury Services is one of the world’s largest providers of treasury management services and a division of JPMorgan Chase Bank, N.A., member FDIC. More information can be found at www.jpmorgan.com/ts.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
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