Mumbai: Life Insurance Corporation of India (LIC) and the Employee Provident Fund Organisation (EPFO) have decided to fully subscribe to the Rs.7,400 crore bond issue of Air India, thus giving a lifeline to the national carrier.
An Air India spokesperson said that both LIC and EPFO have agreed to buy all the non-convertible debentures (NCDs) being sold to raise resources to repay bank loans.
“The proceeds will be paid out to the banks and it will reduce our short-term loans,” the spokesperson said.
Air India has borrowed Rs.18,000 crore from banks to meet working capital requirements.
Though the whole issue has been sold out, the bond sale programme would remain open till December 18, Air India officials said.
22/11/12 The Hindu
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An Air India spokesperson said that both LIC and EPFO have agreed to buy all the non-convertible debentures (NCDs) being sold to raise resources to repay bank loans.
“The proceeds will be paid out to the banks and it will reduce our short-term loans,” the spokesperson said.
Air India has borrowed Rs.18,000 crore from banks to meet working capital requirements.
Though the whole issue has been sold out, the bond sale programme would remain open till December 18, Air India officials said.
22/11/12 The Hindu
