SBI and Citibank likely to help Air India to raise funds

$300 million being raised from overseas market via external commercial borrowing route

sweta-ranjan

Sweta Ranjan | May 11, 2015


#SBI   #Air India   #Citibank   #borrow   #funds  

The beleaguered national carrier is aiming to rebuild and restructure its tattered image by raising $300 million from overseas market via External Commercial Borrowing (ECB). The Air India is believed to be mopping up these funds from foreign market in order to meet its working capital requirements.

ECB is an instrument to raise funds that allows firms to access overseas money.  The ailing maharaja is aiming to come out of cash-crunch mode by tying up with Citibank and State bank of India (SBI).

Sources inform that the AI has received many proposals from various banks and financial institutions. The proposals are being evaluated by the ministry and the AI. “Currently, the most attractive offer has come from Citibank and the SBI. We might tie up with them,” sources say.

On April 9 the AI had floated international tender in order to raise $ 300 million through ECB window. The last day to submit the offer was initially fixed for April 27 which later was extended to May 4.

Sources say that the Citibank and SBI have jointed submitted the offer which looks the most lucrative.    The funds raised via this window would be guaranteed by the Government of India. The As per the AI’s invitation document the interest rate will be linked to London inter-bank offered rate (Libor).

In 2012 Air India was allowed, for the first time to raise funds via ECB for a period of one year. The funds raised via ECB window will be utilized for working capital and clearing the liabilities availed from domestic banks. 

Comments

 

Other News

Gripping graphic narrative helps make sense of pandemics past

The Moral Contagion By Julia Hauser and Sarnath Banerjee HarperCollins, 140 pages, Rs 699 The world has lar

“Globally, there is unprecedented positivity for India”

Addressing the Viksit Bharat Viksit Uttar Pradesh program in Lucknow on Monday, prime minister Narendra Modi launched 14,000 projects across the state, worth more than Rs 10 lakh crore at the fourth groundbreaking ceremony of UP Global Investors Summit held in February 2023. The projects relate to sectors

World’s biggest bird-a-thon begins in India

During the four days from Feb 16, more than a thousand birdwatchers throughout India are coming together with the goal of documenting as many birds as possible across the country’s diverse locations. Over one lakh birdwatchers globally participate in the annual Great Backyard Bird Coun

Comments sought on Draft Guidelines for Prevention of Misleading Advt in Coaching Sector

The Central Consumer Protection Authority has sought public comments on the ‘Draft Guidelines for Prevention of Misleading Advertisement in Coaching Sector’. The draft guidelines are placed on the website of the Department of Consumer Affairs and are accessible through the link:

Electoral bond scheme unconstitutional: Supreme Court

In a landmark judgment, the Supreme Court of India has held the anonymous, unregulated and unlimited funding through electoral bonds and companies as unconstitutional. The five-judge Constitution Bench of the Supreme Court comprising chief justice DY Chandrachud and justices Sanjiv Khanna, B

Interim Budget and frontier technology: Sab ka Vikas, Sab ki Technology

The world is at the cusp of a revolution based on Industry 4.0 and green technologies, including AI, big data, IoT, EVs, solar power, etc., which offer developing countries the opportunity to leapfrog into economic prosperity. However, India’s gross expenditure on R&D (GERD) still stands at a mea

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter