Monday, August 07, 2017

Air India seeks $740 million loan to finance purchase of 6 Boeing planes

New Delhi: Air India is looking for bridge loans worth up to $740 million to finance purchase of six Boeing 787-8 planes, according to a tender document.

While the government is working on final contours for a strategic disinvestment of its stake in loss-making Air India, the airline is ready with plans to fly to more overseas destinations.

The airline has sought offers from banks and financial institutions to arrange bridge financing of up to $740 million for the six aircraft. The amount translates into around $123.3 million per plane.

At the current exchange rate, $740 million is around Rs 4,720 crore.

"In addition to the Government of India guarantee, Air India will offer the aircraft as a security. The facility should be a direct loan without the requirement for formation of a special purpose vehicle structure which requires title transfer," the tender document, floated last Friday, said.
07/08/17 PTI/Economic Times

0 Comments: