ICICI Bank raises bonds backed by government guarantee for carrier
Air India has repaid term loans of Rs 5,500 crore it owed to a clutch of public sector banks after private sector lender ICICI Bank raised money for the debt-laden airline through a sovereign backed bond issuance.
ICICI Bank had raised the bonds three weeks ago. Chairman and managing director of Air India Rohit Nandan confirmed retirement of Rs 5,500 crore debt through issuance of bonds to consortium of banks led by ICICI Bank. "We have managed to retire Rs 5,500 crore debt and are trying to retire expensive debt with long term low-interest rates," Nandan told Financial Chroncile.
In an email response, ICICI Bank said the bonds were fully backed by unconditional, irrevocable and continuing guarantee from the centre and proceeds of the bond issue were used to refinance centre-guaranteed rupee loans of Indian banks. "A part of the bank’s holding in the bonds was sold in the market,” the email read.
07/11/11 Rupesh Subhash Janve & Manju AB/mydigitalfc.com
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