Posted to the web 10 December 2007
Kunle Aderinokun
Abuja
Three of the nation's foremost banks, namely First Inland Bank Plc, Bank PHB Plc and Fidelity Bank Plc are guaranteeing about N6.25 billion (an equivalent of $50 million) representing a total loan facility granted to Afrijet Airlines Limited and its sister company Continental Aviation Services (Nigeria) Limited (CAS) by African Export Import Bank (AFREXIM) headquartered in Cairo, Egypt.
From the total, Afrijet secured $30 million in April 2007, to expand its airline operations while CAS received $20 million in June 2007 to finance cargo operations worldwide following its acquisition on November 20, 2007, of DAS Air Cargo reputed to be the largest cargo airline in Africa.
CAS owns 70 percent of Afrijet, which is presently undergoing major restructuring and would commence full operations in the first quarter of 2008. All the three banks are involved in the $30 million facility. Under the arrangement, First Inland Bank is providing $11 million while BankPHB and Fidelity Bank will finance $10 million and $9 million respectively.
On the other hand, the $20 million financing is expected to be borne by First Inland Bank and BankPHB in the proportion of $10 million each.