$10m IFC loan to Budhha Air

Kathmandu, August 19:

IFC, a member of World Bank Group, provided $10 million loan to the Buddha Air to strengthen its market leadership.

For the purchase of two ATR 42/320 aircraft from France, Buddha Air submitted an investment proposal to IFC and it approved the proposal. The aircraft will be in operational in Kathmandu by mid August.

IFC has recently approved a 10 year long-term loan of $10 million to part finance this expansion.

Currently Buddha Air owns five 1900D Beech aircraft and two 1900C Beech aircraft, states a press release.

IFC has invested $62.7 million in four Nepali projects in the past — two in hydropower generation, one in tourism and one in a leasing company. Its current investments in transport sector overall amounts to half a billion dollars.

According to IFC, in the fiscal year 2007-08, IFC committed $8.2 billion and mobilised an additional $3.9 billion through syndicates and structured finance for 299 investments in 69 developing countries.

IFC provides advisory services in 97 countries across the world.