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

My musical journey has been really beautiful: Harshdeep Kaur

Harshdeep Kaur is a playback singer better known for her Sufi renditions. She sings Hindi as well as Punjabi. She sang ‘Ik Onkar’ in Rang De Basanti apart from several other soulful songs. Her track ‘R.I.P.’ composed by AR Rahman was part of Oscar-winner Danny Boyle’s film

BJP lawmakers top the list in hate speech cases

Out of all MPs and MLAs in office, 58 have declared cases related to hate speech. This includes union minister for drinking water and sanitation Uma Bharti along with 14 other Lok Sabha MPs. The list also includes 8 state ministers. A party wise analysis reveals that BJP has the highest numb

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

Togadia, Sinha and anti-Modi prejudices masked by empty rhetoric

There is an uncanny similarity in the pathological opposition to prime minister Narendra Modi by two members of the right wing, Pravin Togadia and Yashwant Sinha. They come from a diverse social and political background; yet they share a common strand that shows an unmitigated hatred towards

“We are becoming American digital colonies”

Data is the new oil; and it needs to be protected. In an interaction with Governance Now, Lionel Baraban, CEO of Famoco, talks about how the French tech firm is developing secure business devices to safeguard data against going to other countries. What are the major roles o

Goa Shipyard and MTU, Germany to manufacture MTU engines in India

Goa Shipyard Ltd (GSL) and MTU, Germany have agreed to cooperate in the  local manufacturing of technologically-advanced MTU series 8000 engines in India. Under the agreement, which was signed at India’s leading defence trade show Defexpo-18, the companies will manufacture the 16-

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter