Air India has raised approximately USD 215 million from Bank of India and Standard Chartered Plc to refinance debt linked to its fleet expansion, sources familiar with the matter said.
According to media reports, the six-year loan was arranged through Gujarat International Finance-Tec City (GIFT City) and carries an interest rate of about 168 basis points above the secured overnight financing rate, according to the sources, who requested anonymity as the deal has not been publicly disclosed.
The funds will be used to refinance short-term debt that Air India incurred to acquire six Boeing 777-300ER aircraft. Reports in July indicated that the airline was seeking a loan of roughly USD 200 million for this purpose.
The financing comes in the wake of a June Air India plane crash, one of the country’s most severe aviation accidents in recent years, which had initially raised concerns about slowing down the airline’s fundraising efforts.
Notably, this transaction marks the first time Bank of India has acted as a mandated lead manager for a loan deal issued from Gift City.
This loan highlights Air India’s ongoing efforts to manage its debt profile and support fleet expansion while navigating operational and safety challenges in the aviation sector. |
