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

PSUs under steel ministry must share resources: Minister

Steel minister Chaudhary Birender Singh has directed a high-level coordination committee comprising CMDs and top ministry officials to be constituted for pooling and sharing of resources among PSUs.   He said, “This will lead to aggregation of demand and economies of sc

India seeks dispute panel against US at WTO

India has submitted its first request for establishment of a dispute panel against the US at the World Trade Organisation (WTO)—a request that was blocked by Washington on February 20 stating that this dispute was launched for purely political reasons. According to India, eleven measures ad

So what Pahlaj Nihalani, if there`s lipstick under the burkha

The Central Board of Film Certification seems to be fast turning into 16th century Italian theatre Commedia dell`arte, whose special characteristic is the lazzo - a joke. And Pahlaj Nihalani is the prima donna of all that is not right with the censor board. Nihalani, who is frequently quite

India needs policy measures to conform to global standards: Carnegie

India faces significant challenges in the area of trade policy— the global economic slowdown, increasing protectionism, the stalled mega-trade deals that could in time be revived, and perhaps more important, its own domestic preoccupations. For India to achieve its policy objectives, the government a

The power of a meal

In 2000, we set out on an uncharted journey. Neither did we have any strategy nor any idea about how far we could go. I still remember the day when we took the first meal to a government school. The children loved it. I did not believe that we would go with food the next day as well, but we did, and now we

Should Pahlaj Nihalani be axed as the chairperson of Central Board of Film Certification?

Should Pahlaj Nihalani be axed as the chairperson of Central Board of Film Certification?

Video

अखिलेश डूबते जहाज में जा बैठे - मोदी
Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter