A-I to raise $1.1 bn loan for fleet acquisition

Mumbai: National flag carrier Air-India would shortly tap the debt market for raising $1.1 billion to part-finance the purchase of 68 aircraft from the US-based aircraft manufacturer, Boeing. The total acquisition cost is pegged at $7 billion.
The company had earlier taken a loan of $429 million from an IDBI-led consortium. The US Exim Bank would offer guarantee for this loan and a sovereign guarantee is expected to follow suit soon.
The airline is in the process of preparing a detailed application to the US Exim Bank for a preliminary commitment for the guarantee, which would be later converted into a final commitment.
10/04/06 P R Sanjai/Business Standard

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