IFC Home
Creating Opportunity Where It's Needed Most

IFC Loan to Buddha Air to Improve Air Travel Connectivity in Nepal


In New Delhi:
Minakshi Seth
Phone: +91 11 4111 1000
E-mail: MSeth@ifc.org


Kathmandu, Nepal, July 18, 2012—IFC, a member of the World Bank Group, is providing a $6.9 million loan to Buddha Air to help the airline offer improved air travel connectivity in Nepal.

IFC’s loan will enable Buddha Air to purchase a second ATR 72 aircraft, strengthening the company’s operations in the country. Improved air services mean more options for tourists, and better connectivity for Nepal’s population. The airline serves 10 domestic destinations.

“IFC’s second investment in Buddha Air will help us consolidate our services in the region,” said Birendra Basnet, Managing Director of Buddha Air.

Improving air travel is essential for better domestic and international connectivity in Nepal because of the country’s mountainous terrain. IFC provided a loan of $10 million in 2008 to Buddha Air to purchase two ATR-42 aircrafts and to construct a closed-door hangar at the Tribhuvan International Airport in Kathmandu.

“Addressing the huge demand for infrastructure in Nepal is a strategic priority for IFC,” said Anita George, IFC’s Asia Director for Infrastructure and Natural Resources. “Our repeat investment in Buddha Air will help the company offer more travel options and reduce travel time for the citizens of Nepal.”

Incorporated in Nepal in 1996, Buddha Air operates domestic passenger flights between Kathmandu and Nepal’s other regional airports. It also runs sightseeing flights to Mount Everest, offering an onboard view of the world’s highest peak.

About IFC
IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.

Stay Connected
www.ifc.org/southasia
www.facebook.com/IFCsouthasia
www.twitter.com/IFC_SouthAsia
www.ifc.org/facebook
www.twitter.com/IFC_org
www.youtube.com/IFCvideocasts  
www.ifc.org/SocialMediaIndex