Mumbai: Two days after the government okayed a turnaround plan, the cash-strapped national carrier Air India invited merchant bankers to raise working capital loans up to $1 billion from overseas markets.
The move follows the government allowing AI to borrow up to $1 billion annually through the external commercial borrowing (ECB) route.
The airline has floated an "invitation of offers" for raising funds through the ECB route. It is seeking to raise the funds for at least one-year period at either a fixed or floating rate, according to the offer document. Besides, Air India is also open to any innovative structured financing package which reduces the financing cost, says the document.
Last Thursday, the government approved the much-awaited turnaround plan and a financial restructuring plan (FRP) which involves a Rs 30,000-crore equity infusion by the government over the next eight-year period and a debt recast (CDR) of Rs 21,200 crore.
15/04/12 PTI/Economic Times
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