Air India has tied up with two overseas banks to arrange short-term loans to the tune of USD 315 million to partly fund the acquisition of three Boeing 787 Dreamliner aircraft.
Air India has already taken the delivery of one aircraft late last month, and the remaining two are scheduled to be delivered to the carrier by this month and in June 2015. "The bridge financing of this aircraft (the already delivered) was arranged by Deutsche and Standard Chartered Banks.
These banks were awarded the mandate of USD 315 million to partly finance the delivery of three aircraft including the two which are to be delivered this month and in June," a senior airline official said.
A bridge-loan is typically used to meet payment commitments until a long-term financing is arranged. The national carrier currently has 19 Boeing 787-800 aircraft in its fleet and eight more are come as part of a purchase deal with the US-based aircraft manufacturer.
The carrier had ordered 68 aircraft from Boeing in January 2006, which include 27 Dreamliners, 41 Boeing 777s and Boeing 737-800s. The airline plans to convert these short-term loans into long-term borrowings within a year, sources said adding, "bridge finances will be replaced within a year through a long-term financing either by way of sale and lease back of aircraft or outright purchase".
The flag carrier had in January invited bids from banks and financial institutions to arrange bridge finance of up to USD 330 million to pay for three Boeing 787-800s.
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