DFCU Bank is set to lend $15.3 million (about Shs57 billion) to government as the latter seeks to raise $80.3 million (about Shs300 billion) needed as part payment to Airbus SE for the manufacture of aircraft for the national carrier, the Uganda Airlines, ChimpReports has learnt.
This website has come across correspondences between Airbus SE and the Ministry of Finance, Planning and Economic Development, indicating that before it can manufacture and deliver the two aircraft, the government of Uganda must pay the $80.3 million as commitment fee.
In response, the government reached out to several financial institutions with the financial muscle to co-finance the project in form of loan, which government will then pay gradually.
Among those reached out were DFCU Bank, East African Development Bank, Investec Bank Limited and African Export-Import Bank Limited. In response, DFCU Bank pledged to raise $15.3 million, African Export-Import Bank Limited pledged to raise $25 million, EADB $20 million and Investec Bank $20 million.
Finance minister Matia Kasaija, in a letter August 24, directed BOU Governor Emmanuel Tumusiime-Mutebile to establish whether DFCU Bank was adequately capitalized. This was in response in media reports that the bank was in financial limbo.
After through assessment for about a month, Mr Mutebile wrote back, confirming that DFCU is well capitalized.
“This is to advise that DFCU Bank Limited is adequately capitalized, has sufficient liquidity and the req-uisite risk management processes to ably undertake the proposed airlines financing project of shs57.57 billion,” the Governor’s letter dated September 24, 2018 reads.
When contacted, Mr Kasaija confirmed the development and said they are already in advanced discussions with the four banks.
In July, this website reported that Uganda Airlines, the national carrier of Uganda, signed a memorandum of understanding for two A330-800neo, the new version of the best-selling A330 wide body airliner.
A33O planes feature new wings new Rolls-Royce’s latest-generation Trent 7000 engines, new systems and a new Airspace cabin interior.
The agreement was announced at Farnborough airshow by Ephraim Bagenda, CEO of Uganda Airlines and Eric Schulz, Airbus Chief Commercial Officer.
Uganda Airlines plans to use the A330-800neos to build its international long-haul network with the aircraft offering cutting-edge technologies along with most efficient operations.