RFP Schedule No: DACAW/Delivery Financing/787-8/ Senior Loan/2017/59 Date: 29 November 2017

Transcription

1 RFP Schedule No: DACAW/Delivery Financing/787-8/ Senior Loan/2017/59 Date: 29 November 2017 Closes ON: 28 January 2018 at 1000 Hrs. Local Time and 0400 Hrs. UTC REQUEST FOR PROPOSAL (RFP) FOR SENIOR LOAN FOR FINANCING OF DELIVERY PAYMENT FOR TWO (2) BOEING AIRCRAFT DHAKA November 2017 Page 1 of 7

2 A. INTRODUCTION 01. Biman Bangladesh Airlines Limited ( Biman ), the national flag carrier of Bangladesh, was established in February At present Biman is operating flights to 07 Domestic and 15 International destinations. Out of the International destinations, Biman operates to 02 destinations in the SAARC countries, 04 destinations in the South East Asia, 08 destinations in the Gulf & Middle-East and 01 destination in Europe. 02. Biman has 13 (thirteen) aircraft in its fleet including 04 (four) ER, 02 (two) ER, 01 (one) A , 04 (four) and 02 (two) Dash8-Q400 aircraft. Out of 13 aircraft, Biman leased two aircraft from Egypt Air, two aircraft from GECAS and two D8-Q400 aircraft from Smart Aviation on dry lease basis and one A aircraft from WAMOS Air on wet lease basis. 03. Biman has increased its weekly frequencies to some potential routes and is also planning to extend its services to prospective new destinations Guangzhou, Colombo, Male and Sydney along with resumption of flights to Tokyo, Manchester, Rome, New York, Delhi and Hong Kong. 04. Biman Bangladesh Airlines signed a Purchase Agreement with Boeing on 22 nd April 2008 for purchase of new generation 4 X ER and 4 X aircraft. Another agreement was also signed with Boeing on 30 th May 2008 for purchase of 2 X aircraft. Biman has already taken delivery of four ER in 2011 & 2014 and two in November/December The two (2) of are expected to be delivered in August and November 2018 and another two (2) in last quarter of As per the purchase agreement with Boeing, Pre-delivery payment (PDP) of approximately USD million has already been paid to Boeing for two Aircraft supported by Sovereign Guarantee. B. PURPOSE 01. Biman Bangladesh Airlines invites Proposal/Offer from reputed Banks or financial institutions with direct experience arranging and funding aircraft loans under the requested structures for financing of two aircraft scheduled to be delivered in August 2018 and November The financing amount would be either: (ii) up to the purchase price of aircraft and to be considered as Commercial Loan or up to 80% of aircraft purchase price which to be considered as Financial Lease or Page 2 of 7

3 (iii) 80% of the purchase price of aircraft plus 100% of the 2011 Aircraft Sector Understanding (ASU) exposure fee for ECA (Export Credit Agency) SACE- Guaranteed Loans. 02. Biman welcomes innovative structures including tax-incentive structures, ECA supported, Islamic Financing etc. C. TECHNICAL DATA The technical data of two Aircraft which to be delivered in August and November 2017 is as follows: Sl No. Particulars Technical Data 01. Aircraft Model Boeing Manufacturing Serial Number (MSN) & Engine Model & Thrust Rating GENx-1B67 PIP2; 67K Lb 04. Maximum Takeoff Weight 227,930 kg 05. Number of Seats and Pitch Business:24 ( 65inch) Economy: 247 ( 31inch) Total: IFE system and manufacturer Business: ex3 & Panasonic Economy: ex3 & Panasonic D. SOVEREIGN GUARANTEE Ministry of Finance, Government of Bangladesh has agreed, in principle, to provide Sovereign Guarantee in favor of the financial institution providing delivery financing of the 4 (four) aircraft. The Sovereign Guarantee is contingent upon accomplishment of required formalities as prescribed by the Government of Bangladesh. E. SACE (ITALY) GUARANTEE SACE, a joint-stock company of Italy, wholly owned by Cassa depositi e prestiti, generally offers a wide range of insurance and financial products, export credit, investment protection, financial guarantees, surety bonds and factoring, has expressed interest in principle in providing Guarantees for the aforementioned two (2) aircraft subject to completion of the due diligence process and fulfillment of standard conditions/formalities. F. SUBMISSION OF THE PROPOSAL/OFFER The Proposal/Offer may be submitted to the Controller of Accounts at a dedicated df787sr@bdbiman.com on or before 1000 hours Local Time (0400 hours UTC) of 28 January Proposal/Offer may also be submitted through Courier Service or dropped in the Box placed in the Office of the Controller, Biman Head Office, Balaka, Kurmitola, Page 3 of 7

4 Dhaka-1229 within the stipulated time. The Proposal(s)/Offer(s) will be opened immediately after the closing time in Bangladesh Airlines Ltd. would not be responsible for late receipt of Proposal/Offer due to any reason, whatsoever. G. TENDER DOCUMENT 01. Bidders must provide general background information on the bank or financial institution. It is mandatory requirement that bidder should have prior experience in Aircraft Financing under the structures being proposed/offered. 02. Bidders must be acceptable to the Government of Bangladesh 03. The offer must be valid for 180 days after the offer due date. 04. Transaction Timetable: Issuance the RFP to reputed Bank and financial institutions by 28 th November 2018, and (ii) Offer due date to Biman on 28 th January Bidder is requested to provide the following information along with the offer. Aviation financing experience of the bidder / bidding consortium Please provide aviation financing volume executed last 3 years. (ii) Wide body transactions executed by the bidder / bidding consortium Please list wide body transaction executed in the last 3 years. (iii) Experience of working with government supported financing. (iv) Experience of working with SACE or other ECA financing. 06. General terms for this transaction: Invitation for Commercial Loan Financing: a. Offers shall be in US Dollars for maximum amount of USD Million. b. The offer shall be for a term of minimum 144 months with Quarterly payments of principal and interest. c. 3 months floating rate payable every 3 month in arrears. There should be an option available to Biman and applicable to each Aircraft loan, of a fixed rate to be chosen with in three business days before either of the date of drawdown or any interest payment date thereafter. d. Offers should be based on direct loans and not be termed as capital markets transactions. e. The interest rate, fees, costs and other terms and conditions should be clearly defined in the offer. f. The loans will be supported by a guarantee from the Government of Bangladesh. Page 4 of 7

5 g. The form and structure of the loan and the guarantee will be as agreed with Biman and the Government of Bangladesh. OR (ii) Invitation for Financial Lease Financing: (a) Aircraft : Two Boeing aircraft equipped with two GEnx engines each. (b) Estimated Amount of Financing : Aggregate amount of financing will be 80% of USD Million. (c) Borrower/Lessor : A special Purpose vehicle ( SPV ) in a mutually agreeable jurisdiction will purchase the aircraft from the manufacturer. Simultaneously the lessor will enter into a finance lease with the Lessee. (d) Lessee : Biman Bangladesh Airlines Ltd. (e) Term of Financing Lease : Minimum One hundred and forty four (144) months from the Lease Inception Date. The repayment would be on quarterly installments of principal and interest payment (f) Financing Interest/Rental basis from the delivery date of each Aircraft. : 3 months floating rate payable every 3 month in arrears. There should be an option available to Biman and applicable to each Aircraft loan, of a fixed rate to be chosen with in three business days before either of the date of drawdown or any interest payment date thereafter. (g) Currency of Financing : United States Dollar (USD) (h) Aircraft Registration : Aircraft will be registered in Bangladesh. Other Documentation Terms and Conditions : To be agreed with Biman or the Government of Bangladesh, as the case may be. (j) Cape Town Convention Ratification : The Government of Bangladesh has acceded to the Treaty in December 2008 and is currently working on the process of getting included in OECD list. (k) Sovereign Guarantee : The Government of Bangladesh will provide a Sovereign Guarantee in favor of lessor/lessor owner. OR (iii) Invitation for SACE/ECA-Guaranteed Loan Financing: (a) Aircraft : Two Boeing aircraft equipped with two GEnx engines each. (b) Estimated Amount of : Aggregate amount of financing will be 80% Page 5 of 7

6 Financing of USD Million. In addition to above 100% 2011 ASU exposure fee calculated on the above amount. (c) Borrower/Lessor : A special Purpose Company (SPC) in a taxfree jurisdiction. (d) Guarantor : The SACE of the Italy. All the offers will be contingent upon Biman receiving revised approval on a Final Commitment for Guarantee support from the SACE/ECA. (e) Lessee : Biman Bangladesh Airlines Ltd. (f) Term of SACE/ECA Guaranteed Loan : Minimum one hundred and forty four (144) months from the Lease Inception Date. The repayment would be on quarterly installments of principal and interest payment basis from the delivery date of each Aircraft. (g) Financing Interest : 3 months floating rate payable in every 3 month. There should be an option available to Biman and applicable to each Aircraft loan, of a fixed rate to be chosen with in three business days before either of the date of drawdown or any interest payment date thereafter. (h) Currency of Financing : United States Dollar (USD) Aircraft Registration : Aircraft will be registered in Bangladesh. (j) Security : Guarantee of SACE. SACE to be secured by a Mortgage, Assignment of the Lease Agreement and the Assignment of Insurances. (k) (l) Other Documentation Terms and Conditions Cape Town Convention Ratification (m) Sovereign Guarantee : To be agreed with SACE, Biman or the Government of Bangladesh, as the case may be. : The Government of Bangladesh has acceded to the Treaty in December 2008 and is currently working in the process of getting included in OECD list. The Government of Bangladesh will provide a Sovereign Guarantee in favor of SACE 07. Offers may be made only for the Senior Loan referred under this RFP, or jointly for the Senior Loan and the Junior Loan floated under a separate RFP ref: DACAW/Delivery Financing/787-8/Junior Loan/2017/60 Date:29/11/ In the Proposal, following information must be clearly specified: The interest rates, derivatives such as swaps, forward start, swaps, collars or caps; Page 6 of 7

7 (ii) Identify in detail fees and expenses such as commitment fee, management fee, agency fee, security trustee setup/ administration costs, SPC setup/counsel/ administration costs and any out of pocket costs/expenses required to be paid by Biman. (iii) All transaction fee expenses for any third parties should be capped and clearly mentioned in the quote (e.g. Legal fees, Trustee fees etc. as applicable) (iv) Identify key team members who will be the primary focal point for this transaction. 09. Please provide a description on following points along with the offer. (ii) Financing structure including any tax implications and Transaction structure diagram. Benefit to Biman of using such a structure. 10. Evaluation (ii) Pricing will be evaluated on the total all-in cost including all fees with appropriate weightage for the proposed amortization schedule. For evaluation of the offers the LIBOR for the 3-month period which appears on Reuters Screen LIBOR01 Page will be taken. H. BIMAN S RIGHTS Biman Bangladesh Airlines Ltd. reserves the right to accept or reject any or all proposal(s)/offer(s) partly or wholly at any time and/or stage without assigning any reason, whatsoever, and no claim shall be entertained in this regard. I. FURTHER INFORMATION For further information or query, Controller of Accounts may be contacted over Telephone at /ext.-2616, (Direct), controller@bdbiman.com during the office hours. A.S.M Monjur Emam Controller of Accounts Page 7 of 7