Air-India to raise US Exim Bank guaranteed loans for jet purchase

New Delhi: The government today said state-owned carrier Air-India would raise funds through loan guaranteed by the US Exim Bank to part-finance its purchase of 68 aircraft costing about 7.2 billion dollars.
In a written reply to a question in Lok Sabha, Union Civil Aviation Minister Praful Patel said Air-India and its subsidiary Air India Charters Ltd (AICL) had proposed to raise 85 per cent of the project cost to acquire the 68 planes.
He said although no final agreement has been signed, ABN Amro Bank had been mandated as Exim Bank guaranteed lender for the first tranche of 17 aircraft costing 1.5 billion dollars.
The minister, however, said the financing for the balance 51 aircraft totaling 5.7 billion would be arranged later.
Patel said the remaining 15 per cent would be raised through commercial loans for which State Bank of India and ICICI Bank have been mandated.
23/11/06 Zee News

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