Gulf Air and Standard Chartered Bank (SCB) Monday signed a syndicated loan agreement for the provision of US$ 65 million that will be used to finance continued investments forming part of the airline's three-year restructuring program, notably in the airline's fleet, IT infrastructure and its product and service portfolio.
In terms of the agreement signed at the Bahrain Financial Harbour, Standard Chartered Bank, acting as the arranger and agent for the consortium of lenders, which include Ahli United Bank (Bahrain) BSC, Al Ahli Bank of Kuwait KSC, Bank Muscat (SAOG), National Bank of Oman (SAOG), Persia International Bank Plc, Samba Financial Group and Standard Chartered Bank, will extend credit facilities valued at US$65 million to the airline. The loan is repayable over a period of three years.
“In the last year we reduced the airline’s losses by more than 50 per cent. This year it is our objective to break even,” said James Hogan, Gulf Air’s President and Chief Executive. “There is no quick fix to achieve sustained corporate change and commercial viability. It is complex process which, in addition to the commitment of likeminded people and organisations, requires significant investment." (menareport.com)
© 2004 Mena Report (www.menareport.com)
