$300 million being raised from overseas market via external commercial borrowing route
Sweta Ranjan | May 11, 2015
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.
People queued up since early morning to cast their ballot to decide the political fate of 851 candidates in the second and final phase of the bitterly fought Gujarat assembly elections. The votes in all the 182 seats will be counted on December 18. Over 22 million people are eligible to cast
Had the situation not been so desperate, then the AAP government’s proposal to sprinkle water from helicopters would have been considered hare-brained. But, a more practical solution to tackling air pollution may well be around the corner and it lies in the success of a pilot project in Iceland.
Would demonetisation and GST have an impact on the Gujarat elections?
In the organized manufacturing and service sector, employment is expected to increase from the current 38 million to 46-48 million by 2022, a new study has found. All the new forms of employment are expected to add a further 20% - 25% to the workforce of the current deﬁned “or
A day before a Supreme Court bench takes up petitions opposing mandatory Aadhaar linkage with several government services, the government has withdrawn its December 31 deadline to link Aadhaar with bank ac
A wide swathe of economic activities was nationalised in India after independence, and especially during Indira Gandhi’s prime ministership, for predominantly political reasons. But state ownership was also justified as a way to correct market failures, increase investible surpluses, and pursue wider