Air India raises $215 million from Standard Chartered, Bank of India

Proceeds will be used to refinance shorter duration debt Air India used to acquire six Boeing 777-300ER aircraft, the people said.

Air India raised about $215 million from Bank of India and Standard Chartered Plc for refinancing, according to people familiar with the matter.

The six-year loan, raised through Gujarat International Finance-Tec City, or GIFT City, is priced at about 168 basis points over the secured overnight financing rate, said the people, who asked not to be identified because it is not yet public.

Proceeds will be used to refinance shorter duration debt Air India used to acquire six Boeing 777-300ER aircraft, the people said. Bloomberg News reported in July that Air India was seeking a bank loan of about $200 million.

The loan comes after an Air India plane crash in June was one of the worst aviation accidents in the country, initially causing talks for fund raising to slow.

Air India, Bank of India and Standard Chartered did not immediately reply to requests for comment.

The deal represents the first time Bank of India acted as a mandated lead manager in a loan deal from GIFT City, one of the people said.