New Delhi: Air India hopes to raise $990 million (?6,500 crore) through the sale and lease back (SLB) arrangement for nine Boeing 787 aircraft with Duetsche Bank.
The Air India officials indicated that the funds raised through the SLB route will be used to repay loans that the airline had taken for acquiring the nine aircraft.
The deal with Duetsche Bank is expected to be concluded by the middle of next month.
Globally, airlines use the SLB route to sell the aircraft to the sellor and then acquire it back on lease for a long period of time and is looked as a method to unlock the asset value, the official said.
The SLB is likely to be for 12 years with an option to renew by another three years, officials said.
18/01/16 Business Line
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The Air India officials indicated that the funds raised through the SLB route will be used to repay loans that the airline had taken for acquiring the nine aircraft.
The deal with Duetsche Bank is expected to be concluded by the middle of next month.
Globally, airlines use the SLB route to sell the aircraft to the sellor and then acquire it back on lease for a long period of time and is looked as a method to unlock the asset value, the official said.
The SLB is likely to be for 12 years with an option to renew by another three years, officials said.
18/01/16 Business Line
