A failure by financial institutions to respond en masse to its January 2024 request for expressions of interest (EOIs) to lend it more than USD1 billion has caused Nepal Airlines (RA, Kathmandu) to reissue the EOI.

"The notice has been reissued, while all the previously received sealed EOI documents have been kept unopened," the cover note accompanying the reissue reads.

As ch-aviation previously reported, Nepal Airlines is seeking around USD415 million to cover existing loan liabilities, USD565 million to acquire new aircraft, and USD38 million to construct a hangar. The total sought is USD1.018 billion, and the airline notes that the spending on the three items remains subject to approval from the Nepalese government and other relevant authorities.

The EOI documents, which remain unchanged from January, reveal the airline is looking for a 25-year loan with the option to extend, a fixed interest rate regime for the duration of the loan, and an agreement to make quarterly repayments in line with the local calendar. The documentation suggests lenders secure their loans with liens over the resultant new assets and infrastructure.

ch-aviation contacted Nepal Airlines for comment on the EOI reissue.

ch-aviation PRO airlines data indicates that Nepal Airlines operates a six-strong fleet comprising two DHC-6-300s, two A320-200s, and two A330-200s. It also has several retired Chinese-manufactured aircraft that it is trying to dispose of. The carrier has struggled financially in recent years, reportedly burdened with high debts, inefficient operational practices, inadequate management, and political interference.

Prospective lenders can submit EOIs to Nepal Airlines up until 1700L (1115Z) on April 11, 2024.