Banks have been asked to submit their financial bids by October 26, indicating the amount of government guaranteed loan that they are willing to offer and the all inclusive rate for it. Air India reserves the right to repay or refinance the loan during the tenure of the loan without any pre-payment penalty or requiring any notice period. Reuters file photo
Flag carrier Air India, which is being divested, has sought short-term loans worth Rs 1,500 crore from banks to meet “urgent” working capital needs. The government guarantee for the short term loans is valid up to June 27, 2018 or till the date of disinvestment, according to a document publicised by the airline.
“The amount of Rs 1,500 crore will be drawn in one-three tranches,” it said. This is the second time that the airline is seeking short-term loans within a month. The airline had last month sought short-term loans of up to Rs 3,250 crore to meet urgent working capital requirements.
Banks have been asked to submit their financial bids by October 26, indicating the amount of government guaranteed loan that they are willing to offer and the all inclusive rate for it. Air India reserves the right to repay or refinance the loan during the tenure of the loan without any pre-payment penalty or requiring any notice period.
“Air India would like to draw the STL within three working days after awarding the acceptance letter to the successful bank/s,” the document said. In August, the carrier had sought interim financing worth $740 million (around Rs 4,720 crore) to buy six Boeing 787 Dreamliners.
It had then invited offers from from banks and financial institutions to arrange bridge financing for the amount for 15 months for buying these 787-8 planes. This could mean that one plane could cost $123.3 million.
Earlier in March, Air India had sought $470 million or around Rs 3,100 crore from banks and financial institutions to buy four Dreamliners.