US Exim bank clears A-I's aircraft loan
The bank would guarantee the loan up to 85 per cent of the aircraft cost and the balance 15 per cent would be funded through commercial borrowings.
By PTI |
MUMBAI: The Export-Import Bank of the United States has cleared Air-India's loan proposal for acquisition of 68 aircraft from Boeing Co, making it one of the largest transactions in aviation history done with its support.
The bank would guarantee the loan up to 85 per cent of the aircraft cost and the balance 15 per cent would be funded through commercial borrowings.
"This clearance provides for a final commitment in respect of 17 aircraft and engines to be delivered from November this year up to December 2007, which includes 10 aircraft for Air-India Express and 7 aircraft for Air-India and a preliminary commitment in respect of the remaining 51 aircraft to be delivered between January 2008 upto February 2012," an airline release said here on Monday.
The Government of India would in turn provide a guarantee for 85 per cent of the loan guaranteed by the US Exim Bank. The structuring of the deal is presently being done by Air- India in consultation with Exim Bank and the lenders, the release added.
Air-India had invited applications to finance the delivery payments and the final commitments in respect of 17 aircraft and ABN Amro has been mandated to lead finance the funding supported by US Exim.
The balance 15 per cent would be funded by Indian commercial banks -- State Bank of India and ICICI Bank.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
