US Exim Bank to finance $7.1 bn for A-I fleet

New Delhi: The Export Import Bank of the United States has bagged the contract to finance the $7.1 billion acquisition of 68 Boeing aircraft by the state-owned international carrier Air-India. Exim Bank will finance 85% of the requirement, while the rest 15% will be done through other commercial banks.
Air-India has already taken delivery of two Boeing 737 aircraft, the financing for which has been carried out through the internal resources of the company, which will eventually be refinanced. The delivery of the next three aircraft, which are expected to come this month, will also be initially financed by Air-India only.
The public sector major expects to put in place a financing structure, in consultation with the ministry of finance and the ministry of civil aviation, by the end of this month or early February, so that delivery financing could be done via loan guaranteed by Exim Bank.
11/01/07 Atreyee Dev Roy/Financial Express

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