Thai Airways aims to conclude loan deal by October

Thai Airways International expects to conclude a bank loan deal worth US$338.67 million for refinancing purposes around September or October, Dow Jones reported.

"Previously, we planned to raise this amount via bonds. But given ample liquidity in the financial system and intense lending competition among banks, financial costs on the loans and the bonds are almost the same," Thai Airways' vice president of investor relations Raj Tanta-Nanta told Dow Jones Newswires.

He said given easier access to cheap loans, the airline doesn't see the need to pay arranging fees "and go through the complicated process of bond issuance." However, he noted that the airline can still switch back to bonds should the loan deal fall through.

Thai Airways is undergoing a major restructuring, with Piyasvasti vowing when he took office last October to make sweeping changes to revamp the airline, which has long been plagued by concerns over its transparency and accused of rewarding politically-connected executives.
(Source:www.cargonewsasia.com)