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AirTanker consortium seeks private finance
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02 December 2005
AirTanker consortium seeks private financeTHE international consortium that is expected to secure the USD13 billion contract to replace the UK's fleet of air-to-air refuelling aircraft is looking to attract private finance of up to GBP3 billion (USD5.1 billion).
The EADS-led AirTanker consortium has appointed finance house Deutsche Bank as an adviser, with a view to holding a competition between corporate finance bodies in the spring of 2006.
The UK Ministry of Defence (MoD) selected the consortium as sole bidder for the Future Strategic Tanker Aircraft (FSTA) in February 2006. The programme will be the UK government's biggest Private Finance Initiative (PFI) to date.
"Now that Deutsche Bank has been appointed in an advisory capacity, we expect a competition to be held with a view to raising between GBP2 billion and GBP3 billion," said a spokesman for AirTanker.
"We will be sending out information to the interested parties ahead of the competition. There has been significant interest."
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