Air India Extends Loan Bids For Seven Boeing Planes To Nov. 22
Air India has extended the deadline for lenders to submit bids for a Rs 5,800-crore bridge-loan facility to refinance seven wide-body Boeing planes, to Nov. 22.
The financial bids were to scheduled to be closed on Nov. 14.
The state-run carrier is seeking to refinance six Boeing 787s and one B777.
The sell off-bound airline had on Oct. 30 floated bids from banks and financial institutions to refinance its existing bridge-loan facility worth $819 million (around Rs 5,800 crore) by Nov. 14.
A senior official privy to the development said though the carrier received two bids, it has extended the deadline for greater participation.
Air India has 27 Dreamliners (B-787s) and 15 B777s in the fleet. Of them, 21 B787s are on sale-and-lease-back and the rest six are on short-term bridge loans. Among the 15 B777s, one is on short-term bridge loan.
“The long-term financing for the six B787s and one B777 has not yet been tied up,” the carrier said in a tender document. “Air India invites offers from banks/financial institutions towards refinancing of the existing bridge loan facility of $819 million.”
Generally, a bridge loan refers to borrowing made till a long-term funding facility is available.
The loan tenure would be “one year or till the long term take out financing is in place, whichever is earlier”, the tender note said.
Of the total $819 million bridge loan, $135 million will be for B777s and the rest for the B787s, according to the document.