Comair in Talks With Banks for 3 Billion-Rand Loan for Boeings
Comair Ltd. said it is in talks with banks, including Citigroup Inc, Standard Chartered Plc and Calyon Holdings Ltd., to borrow 3 billion rand ($414 million) to fund the purchase of three Boeing Co. aircraft.
“We did a rights issue earlier this year and now we are working on the loan funding,” Erik Venter, the joint chief executive officer of the Johannesburg-based company, part-owned by British Airways Plc, said in an interview.
The funding will be sourced from a combination “of local and offshore banks, with a large portion” coming from lenders outside of South Africa, he said.
Comair will take delivery of the three 737-800, 189-seater aircraft at the beginning of 2012, he said, adding the last aircraft will be delivered in 2015.
To contact the reporter on this story: Nicky Smith in Johannesburg at nsmith38@bloomberg.net
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