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

Cabinet approves Mobile Phone Manufacturing Scheme

The union cabinet chaired by PM Narendra Modi has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore. It aims to further scale up the production, deepen domestic value addition, strengthen supply chain resilience, enhance global competitiveness. It

Building infrastructure is only half the job

Recent stories of stolen railway wires, disappearing communication towers and missing public infrastructure are often treated as bizarre law-and-order failures of India. Yet they raise a more fundamental question. Why does the State often discover the disappearance of a public asset only after it has alrea

New Delhi’s Indo-Pacific strategy enters a new phase

India appears to be investing fresh dynamism in its Indo-Pacific strategy. At the time when the US, under president Donald Trump, has adopted a conciliatory approach towards China and has changed the name of America’s Indo-Pacific Command to just Pacific Command, India has quietly moved towards con

CAG flags major fiscal lapses in Maharashtra

Maharashtra`s fiscal management has come under sharp scrutiny after the Comptroller and Auditor General (CAG) of India, in its State Finances Audit Report for 2024-25, flagged significant budgetary inefficiencies, accounting irregularities, understatement of key fiscal indicators and widespread governanc

The health sector research we are not doing

Some neglect is loud. This kind is quiet. It sits in research never commissioned, data never collected, questions never asked. In South Asia, that quiet has let the region’s worst health problems stay understudied, underfunded, and out of sight of those who could act.  

Study flags accessibility and last-mile challenges on Mumbai Metro Aqua Line

Mumbai Metro Line 3 (Aqua Line), the city`s first fully underground metro corridor and one of its largest public transport investments, represents a major engineering achievement and has been widely welcomed by commuters. However, the overall commuter experience continues to be constrained by accessibili

Upcoming Conferences





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter