Gulf Air and Standard Chartered Bank (SCB) have signed a syndicated loan agreement for the provision of $65 million.
The amount will finance continued investments as part
of the airline’s three-year restructuring programme and is expected to fund the airline’s fleet, IT infrastructure and its product and service portfolio.
SCB acts as arranger and agent for a consortium of lenders including Ahli United Bank, Al Ahli Bank of Kuwait, Bank Muscat, National Bank of Oman and Standard Chartered Bank.
“Last year, we reduced losses more than 50 per cent. This year’s objective is to break even,” said James Hogan, Gulf Air's president and chief executive. “Achieving sustained corporate change and commercial viability is a complex process which, besides the commitment of likeminded people and organisations, requires significant investment.”
John Iossifidis, regional head, client relationships, wholesale banking at
SCB and signatory to the agreement, said, “The bank is committed to the Middle East region. Gulf Air is an important airline providing vital
support to the economies of Bahrain, Abu Dhabi and Oman.”