March 14: With none of the international lenders showing interest in offering loans, the state-owned Nepal Airlines Corporation (NAC) has issued an expression of interest inviting institutions, both domestic and international, to provide loans for the second time. In its second notice published on Wednesday, NAC is soliciting institutions to provide loans totaling $1.01 billion (Rs 135 billion).

The debt-ridden national flag carrier, on January 23, had issued its initial notice for a loan, primarily for the repayment of its existing outstanding debts. Following a lack of interest from any entities within the initial 45-day window, the corporation has now released a second notice. This notice sets a new deadline of April 11, 2024, in hopes of securing a lending partner.

The expression of interest is open to domestic and foreign government institutions as well as non-governmental financial institutions. According to the proposal, Nepal Airlines is seeking Rs 55 billion (equivalent to $415 million) for managing its existing loans or for swapping its current debts with credit obtained from international lenders. Additionally, the airline is seeking Rs 75 billion (approximately $565 million) for the procurement of new aircraft and Rs 5 billion (around $38 million) for setting up hangars.

The carrier stated in the proposal that the loan would be on a normal fixed interest rate with a repayment period of 25 years subject to extension in mutual understanding.