1 RFP Schedule – PDP Financing of two 737-800 aircraft in 2014

Ref: DACAW/Pre-delivery Financing/2013/353 Date: 01 December 2013

Request for Proposal (RFP)

PDP (Pre-Delivery Payment) Financing of 2 (two) 737-800 aircraft

1. Biman Bangladesh Airlines (Biman) has entered into an agreement with The Boeing

Company ("Boeing") for the purchase of 2 (two) 737-800 aircraft (“the Aircraft”) which are

scheduled to be delivered in November and December 2015. Biman is now looking for financial

institutions to financing the PDP (Pre-Delivery Payment) regarding two 737-800 aircraft

mentioned above. Such a loan will be supported by a guarantee to be provided by the

Government of Bangladesh.

2. Basic requirements are mentioned below:

Purpose of Financing Term loan to finance PDP (Pre-Delivery Payment) scheduled

to be paid to Boeing in November 2013.

Estimated Amount of

Financing

USD 53.45 million

Term of Loan 24 months i.e. from date of drawdown of PDP to the delivery

of the 2nd

737-800 aircraft or any other extended period,

thereafter, as mutually agreed upon.

Currency of Financing US Dollars.

3. Detailed information is available in the RFP Schedule, which may be viewed at Biman’s

website: www.biman-airlines.com. For further information or query, Controller of

Accounts, Biman Bangladesh Airlines Ltd, may be contacted at Telephone: +8802-890-

1590, Cell : 88-011-9042-0627, e-mail: controller@bdbiman.com during the office

hours.

4. Proposals/Offers should be submitted to Controller of Accounts, Biman Bangladesh

Airlines Ltd, Head Office, Balaka, Kurmitola, Dhaka-1229, Bangladesh latest by 1000

hours BST (0400 hours UTC) on 30th

December 2013 through Courier Service or e-mail

to pdppre-737@bdbiman.com. The proposal(s)/offer(s) will be opened on

the same day immediately after the closing time. No Proposal/Offer will be accepted after

the scheduled time and date.

5. 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.

Abu Syed Md. Monjur Emam

(Controller of Accounts,

Biman Bangladesh Airlines Ltd.)

2 RFP Schedule – PDP Financing of two 737-800 aircraft in 2014

Biman Bangladesh Airlines Ltd

Request for Proposal (RFP) Schedule

PDP (Pre-Delivery Payment) for Financing of 2 (two) 737-800 aircraft

1. Biman Bangladesh Airlines (Biman) has entered into an agreement with The Boeing

Company ("Boeing") for the purchase of 2 (two) 737-800 aircraft (“the Aircraft”) which

are scheduled to be delivered in November and December 2015. Biman is now looking

for financial institutions to financing the PDP (Pre-Delivery Payment) regarding two 737-

800 aircraft mentioned above. Such a loan will be supported by a guarantee to be

provided by the Government of Bangladesh.

2. Biman seeks offers from reputed financial institutions for PDP (Pre-Delivery Payment)

financing under a Loan, details of which are set out below:

(a) Aircraft : Two Boeing 737-800 aircraft

(b) Delivery Dates : November and December 2015

(c) Purpose of Financing : Term loan to finance PDP (Pre-Delivery

Payment) scheduled to be paid to Boeing in

February 2014.

(d) Estimated Amount of

Financing

: USD 53.45 million

(e) Borrower/Lessor : A direct loan with no SPV in which case the

Borrower is Biman Bangladesh Airlines Ltd.

(f) Guarantor : It is under process for issuance of Sovereign

Guarantee, in principle, in favour of financing

the PDP (Pre-Delivery Payment) for two 737-

800 aircraft by the Ministry of Finance,

Government of Bangladesh. The final

commitment is contingent upon

accomplishment of required formalities by the

Government of Bangladesh.

(g) Term of Loan : 24 months i.e. from date of drawdown of PDP

to the delivery of the 2nd

737-800 aircraft or

3 RFP Schedule – PDP Financing of two 737-800 aircraft in 2014

any other extended period, thereafter, as

mutually agreed upon.

(h) Financing Interest : 3 month floating rate payable in every 3

months from the date of drawdown or on any

interest payment date thereafter.

(i) Currency of Financing : US Dollars.

(j) Legal Fees : To be determined and capped in the offer.

(k) Other Documentation Terms

and Conditions

: To be agreed with Biman and the Government

of Bangladesh.

(l) Cape Town Convention

Ratification

: The Government of Bangladesh has acceded

to the Treaty in December 2008 and is

currently working on the process to get

included in OECD list.

(m) Sovereign Guarantee : The Government of Bangladesh will provide a

sovereign Guarantee in favor of the financial

institution in support of the loan.

(n) Validity of Offer : Offer must be valid for 60 days after the Offer

Due Date listed below.

(o) Transaction Timetable

By 02 December 2013 : Floated RFP in the daily newspaper and

Biman website.

By 30 December 2013 : Offer Due Date to Biman.

3. In your proposal, you are requested to:

(a) include interest rate derivatives such as swaps, forward start swap, collars or caps etc

if any;

(b) identify in detail the financing structure including any tax implications;

(c) identify in detail and cap all margins as well as fees and expenses such as

commitment fee, management fee, agency fee, and out of pocket costs/expenses

required to be paid by Biman;

(d) provide general background information on the institution including specific

experience in providing Government supported financing;

(e) identify key team members who will be the primary focal point for this transaction;

4 RFP Schedule – PDP Financing of two 737-800 aircraft in 2014

4. The Proposal(s)/Offer(s) should be submitted at the latest by 1000 hours BST (0400

hours UTC) on 30 December 2013 addressed to Controller of Accounts, Biman Bangladesh

Airlines Ltd., Head Office, Balaka, Dhaka, Bangladesh through Courier Service or E-mail at

pdppre-737@bdbiman.com. The proposal(s)/offer(s) will be opened on the same day

immediately after the closing time. No proposal/offer would be accepted after the closing time

and date. Biman Bangladesh Airlines Ltd. will not be responsible for late receipt of any

proposal/offer due to any reason whatsoever.

5. 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.

6. Biman Bangladesh Airlines appreciates your interest in considering financing support for

these transactions. Should you have any additional requirements for information, please contact

Controller of Accounts, Biman Bangladesh airlines Ltd, at the e-mail address

controller@bdbiman.com or office phone number +8802-890-1590 or mobile phone +88-011-

9042-0627.

We look forward to receiving your response.

Abu Syed Md. Monjur Emam

(Controller of Accounts,

Biman Bangladesh Airlines Ltd.)

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