Air India has secured approximately $215 million from Standard Chartered and Bank of India in a six-year loan facility arranged through GIFT City (Gujarat International Finance-Tec City), according to a Bloomberg report.
The financing carries a margin of around 168 basis points over the secured overnight financing rate. The proceeds will help refinance shorter-tenure debt that the airline had taken on to acquire six Boeing 777-300ER aircraft.
This is the first time Bank of India has served as a mandated lead manager in a GIFT City loan transaction. Neither the airline nor the lenders has publicly confirmed the arrangement.
The new $215 million facility underscores the airline’s ongoing strategy to replace shorter-term, higher-cost borrowing with longer-maturity debt, strengthening its financial position as it expands its fleet and network under the Tata Group ownership.
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