RFP Schedule No: DACAW/Delivery Financing/787-8/Junior Loan/2017/60 Date: 29 November 2017 Closes On: 28 January 2018 at 1000 Hrs. Local Time and 0400 Hrs. UTC REQUEST FOR PROPOSAL (RFP) FOR JUNIOR LOAN FOR FINANCING OF DELIVERY PAYMENT FOR TWO (2) BOEING 787-8 AIRCRAFT DHAKA November 2017 Page 1 of 5
A. INTRODUCTION 01. Biman Bangladesh Airlines Limited ( Biman ), the national flag carrier of Bangladesh, was established in February 1972. At present Biman is operating flights to 07 Domestic and 15 International destinations. Out of the International destinations, Biman operates to 02 destinations in the SAARC countries, 04 destinations in the South East Asia, 08 destinations in the Gulf & Middle-East and 01 destination in Europe. 02. Biman has 13 (thirteen) aircraft in its fleet including 04 (four) 777-300ER, 02 (two) 777-200ER, 01 (one) A330-200, 04 (four) 737-800 and 02 (two) Dash8-Q400 aircraft. Out of 13 aircraft, Biman leased two 777-200 aircraft from Egypt Air, two 737-800 aircraft from GECAS and two D8-Q400 aircraft from Smart Aviation on dry lease basis and one A330-200 aircraft from WAMOS Air on wet lease basis. 03. Biman has increased its weekly frequencies to some potential routes and is also planning to extend its services to prospective new destinations Guangzhou, Colombo, Male and Sydney along with resumption of flights to Tokyo, Manchester, Rome, New York, Delhi and Hong Kong. 04. Biman Bangladesh Airlines signed a Purchase Agreement with Boeing on 22 nd April 2008 for purchase of new generation 4 X 777-300ER and 4 X 787-8 aircraft. Another agreement was also signed with Boeing on 30 th May 2008 for purchase of 2 X 737-800 aircraft. Biman has already taken delivery of four 777-300ER in 2011 & 2014 and two 737-800 in November/December 2015. The two (2) of 787-8 are expected to be delivered in August and November 2018 and another two (2) in last quarter of 2019. 05. As per the purchase agreement with Boeing, Pre-delivery payment (PDP) of approximately USD 136.28 million has already been paid to Boeing for two 787-8 Aircraft supported by Sovereign Guarantee. 06. Biman welcomes innovative structures including tax-incentive structures, Islamic Financing etc B. PURPOSE 01. Biman Bangladesh Airlines invites Proposal/Offer from reputed Banks or financial institutions with direct experience arranging and funding aircraft loans under the requested structures for financing of two 787-8 aircraft scheduled to be delivered in August 2018 and November 2018. 02. Offer may be made only for 20% of the purchase price of aircraft and to be considered as Junior loan referenced under this RFP, or jointly for the Junior Loan and the senior loan Page 2 of 5
referenced under a separate RFP: DACAW/Delivery financing/787-8/senior loan/2017/59 Date: 29 November 2017 titled as Request for Proposal (RFP) for Senior Loan for Financing of Delivery Payment for two (2) Boeing 787-8 aircraft. C. TECHNICAL DATA The technical data of two 787-8 Aircraft which to be delivered in August and November 2017 is as follows: Sl Particulars Technical Data No. 01. Aircraft Model Boeing 787-8 02. Manufacturing Serial Number (MSN) 40126 & 40127 03. Engine Model & Thrust Rating GENx-1B67 PIP2; 67K Lb 04. Maximum Takeoff Weight 227,930 kg 05. Number of Seats and Pitch Business:24 ( 65inch) Economy: 247 ( 31inch) Total: 271 06. IFE system and manufacturer Business: ex3 & Panasonic Economy: ex3 & Panasonic D. SOVEREIGN GUARANTEE Ministry of Finance, Government of Bangladesh has agreed, in principle, to provide Sovereign Guarantee in favor of the financial institution providing delivery financing of the 4 (four) 787-8 aircraft. The Sovereign Guarantee is contingent upon accomplishment of required formalities as prescribed by the Government of Bangladesh. E. SUBMISSION OF THE PROPOSAL/OFFER The Proposal/Offer may be submitted to the Controller of Accounts at a dedicated email: df787jr@bdbiman.com on or before 1000 hours Local Time (0400 hours UTC) of 28 January 2018. Proposal/Offer may also be submitted through Courier Service or dropped in the Box placed in the Office of the Controller, Biman Head Office, Balaka, Kurmitola, Dhaka-1229 within the stipulated time. The Proposal(s)/Offer(s) will be opened immediately after the closing time in Bangladesh Airlines Ltd. would not be responsible for late receipt of Proposal/Offer due to any reason, whatsoever. F. TENDER DOCUMENT Page 3 of 5
01. Bidders must provide general background information on the bank or financial institution. It is mandatory requirement that bidder should have prior experience in Aircraft Financing under the structures being proposed/offered. 02. Bidders must be acceptable to the Government of Bangladesh 03. The offer must be valid for 180 days after the offer due date. 04. Transaction Timetable: (i) Issuance the RFP to reputed Bank and financial institutions by 28 th November 2018, and (ii) Offer due date to Biman on 28 th January 2018 05. Bidder is requested to provide the following information along with the offer. (i) Aviation financing experience of the bidder / bidding consortium Please provide aviation financing volume executed last 3 years. (ii) Wide body transactions executed by the bidder / bidding consortium Please list wide body transaction executed in the last 3 years. (iii) Experience of working with government supported financing. 06. General terms for this transaction are presented below: (a) Aircraft : Two Boeing 787-8 aircraft equipped with two GEnx engines each (b) Estimated Amount of Financing : Aggregate amount of financing will be maximum USD 50.00 Million. (c) Term of Loan : Minimum 60 months. (d) Currency of Financing : United States Dollar (USD) (e) Financing Interest 3 month floating rate payable every 3 month in arrear with an option, applicable to each aircraft, for Biman to select fixed rate either from the date of drawdown or on any interest payment date thereafter. (f) Aircraft Registration : The Aircraft will be registered in Bangladesh. (g) Security : (a) Sovereign Guarantee to be provided by Government of Bangladesh. (h) Legal Fees (i) Other Documentation Terms and Conditions (j) Cape Town Convention Ratification (b) In case of subordinate Loan, it will include a second charge under a Mortgage. However, second charge will not be created in case of pure commercial loan. : To be determined and capped in the offer. : To be agreed with Biman and the Government of Bangladesh. : The Government of Bangladesh has acceded to the Treaty in December 2008 and is currently working on the process Page 4 of 5
of getting included in OECD list. 07. In the Proposal, following information must be clearly specified: (i) The interest rates, derivatives such as swaps, forward start, swaps, collars or caps.; (ii) Identify in detail fees and expenses such as commitment fee, management fee, agency fee, security trustee setup/ administration costs, SPC setup/ counsel/administration costs and any out of pocket costs/expenses required to be paid by Biman. (iii) All transaction fee expenses for any third parties should be capped and clearly mentioned in the quote (e.g. Legal fees, Trustee fees etc. as applicable) (iv) Identify key team members who will be the primary focal point for this transaction. 08. Evaluation (i) (ii) Pricing will be evaluated on the total all-in cost including all fees with appropriate weightage for the amortization schedule proposed For evaluation of the offers the LIBOR for the 3-month period which appears on Reuters Screen LIBOR01 Page will be taken. G. BIMAN S RIGHTS 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. H. FURTHER INFORMATION For further information or query, Controller of Accounts may be contacted over Telephone at +880-2-8901600/Ext. 2616, +880-2-8901588 (Direct), e-mail: controller@bdbiman.com during the office hours. A.S.M Monjur Emam Controller of Accounts Page 5 of 5