KfW IPEX-Bank arranges Aircraft-Financing for Indian Airlines

Frankfurt (ots) - KfW IPEX-Bank has been commissioned by Indian
Airlines to arrange the financing for the first batch of 10 of a
total of 43 Airbus A320-family aircraft to be delivered by March
2008. The subsequent contracts were signed on monday in Frankfurt by
Mr. Vishwapati Trivedi, Chairman and Managing Director of Indian
Airlines and Dr. Peter Klaus, Chairman of the Board of Managing
Directors of KfW IPEX-Bank and member of the Board of Managing
Directors of KfW Bankengruppe. Angela Behrend-Goernemann, Deputy
Global Head of Transport Finance, signed for 50/50 joint underwriter
HSH Nordbank.

The commercial financing structure perfectly meets the
requirements of Indian Airlines by giving value to Indian Airlines as
the incumbent national carrier, maximising the Bank's reliance on the
aircraft asset as collateral and limiting the usage of the Indian
government guarantee. The deal comprises total loans of more than USD
500 million and a repayment Tenure of 12 years. Subsequent
syndication in the international bank market is envisaged by the
underwriters.

Dr. Klaus emphasized the importance attached by KfW IPEX-Bank to
the objective pursued by the Indian government to support the rapid
expansion of the country's transport system and infrastructure in
order to better exploit India's growth potential. He was particularly
delighted for KfW IPEX-Bank to contribute to the continued growth of
Indian Airlines, reaping the benefits of market growth following
liberalisation: "It is a great pleasure to me that our valuable long
standing customer Indian has chosen KfW IPEX-Bank to arrange this
important financing. As a bank specialized in the financing of
complex transport and infrastructure investments KfW IPEX-Bank is a
committed partner in this field. As part of KfW Bankengruppe we have
been active in India for more than 40 years and can offer
comprehensive and specific know-how."

He underlined that the bank intends to substantially expand its
activities in India. "Within the next three years we want to increase
our portfolio with India to approximately USD 3 billion." Dr. Klaus
announced that KfW IPEX-Bank is about to set up a representative
office in Mumbai for this purpose in the course of this year.

Dr.Trivedi said, "Indian and KFW have had a long association
spanning over last two decades. In February 1986, Indian had signed a
purchase agreement with Airbus Industrie for acquisition of 19 A320
aircraft during the period 1989-90. When Indian was looking for a
financing arrangement for these aircraft in 1988, KfW readily came
forward to extend financing to the extent of USD 250 million. We
value our long standing association with KfW Bank and look forward to
a continued mutually rewarding relationship in the years to come."

Angela Behrend-Goernemann said: "We are very proud to have the
opportunity to support Indian's extension and we see this important
transaction as the beginning of a long-term partnership. This project
underlines the importance which we attach to the Indian market. As an
international specialist in transport we will extend our activities
in this region in the future as well."

About KfW IPEX-Bank

Within KfW Bankengruppe KfW IPEX-Bank provides project and
corporate finance and offers trade and export finance in Germany and
abroad. Worldwide it conducts all market activities of KfW
Bankengruppe that are done on commercial terms. It has been run as a
legally dependent bank within KfW Bankengruppe since January 1, 2004
and as of January 1, 2008, will be separated into a legally
independent subsidiary. In the year 2006 KfW IPEX-Bank made new
commitments for a total of EUR 15 billion. It has Representative
Offices in London, New York, Sao Paulo, Bangkok, Beijing, Istanbul
and in Moscow.

Originaltext: KfW
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For further information:
Dela Strumpf,
Tel: +49(0)69 7431-2984, E-Mail: dela.strumpf@kfw.de

KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Abteilung Konzernkommunikation (KOM)
Tel. +49(0)69 7431-4400, Fax: +49(0)69 7431-3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de


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