Tiger Airways mandates Standard Chartered for two additional A320s

Source: Flightglobal.com
This story is sourced from Flightglobal.com

Tiger Airways Holdings has mandated Standard Chartered Bank to arrange financing for an additional two Airbus A320s the carrier is receiving through the end of its 2010/11 fiscal year ended 31 March.

Tiger had seven aircraft for delivery in its current fiscal year, but it recently advanced two new A320 deliveries.

Standard Chartered Bank was mandated in March this year as the lead arranger of an Export Credit Agencies (ECA) facility guaranteed by Coface. The facility covered seven deliveries planned through January 2011.

The new announcement, which covers the two recently advanced deliveries, will see Standard Chartered Bank arranging the ECAs guaranteed facility with Coface.

The transaction is currently in the documentation phase and is expected to close upon delivery of each aircraft.

The Singapore-based carrier obtained its first ECA-backed financing with Coface for two A320s in January and February this year. Standard Chartered Bank was also the mandated lead arranger. The bank also signed pre-delivery payment financing on a total of six aircraft of the type.

The nine aircraft addition will boost the fleet to 28 aircraft but Tiger says that it will also return two older aircraft that are currently leased in the current fiscal year.

Tony Davis, President and Group CEO of Tiger Airways Holdings, said, "We are grateful to Coface for continuing to provide strong support to Tiger Airways. We also thank Standard Chartered for helping Tiger Airways secure even more cost effective aircraft financing deals, which will enable us to reduce our costs and fares even further."