Air India seeks $819 mln loan for 7 Boeing planes

Air India is looking to raise $819 million (over Rs 5,800 crore) to refinance existing bridge loans availed for six Boeing 787 and one Boeing 777 aircraft. The national carrier is yet to have long term financing facility for six B787 and B777-300ER, according to a tender document.

Bids have been invited from banks, financial institutions for refinancing existing bridge loan facility worth $819 million.

At current exchange rate, the amount will be more than Rs 5,800 crore.

Air India had acquired 27 B787-800 planes and 15 B777-300ER aircraft.

Out of them, 21 B787s are on sale and lease back while the remaining six are on short term bridge loans.

Among the 15 B777 aircraft, one is on short term bridge loan.

Out of the total $819 million bridge loan, an amount of $135 million will be for B777 plane and the rest for B787s, as per the document.

The loan tenure would be "one year or till the long term take out financing is in place, whichever is earlier," it added.

The central government guarantee will be provided for all the planes.

The deadline for submission of bids by banks and financial institutions is November 14.

Generally, a bridge loan refers to borrowing made till a long-term funding facility is available.

Meanwhile, the government is working on the final contours for the proposed disinvestment of Air India, which has a debt burden of around Rs 58,000 crore.