Air India raises Rs5500 crore via bonds: report
04 Oct 2011
Mumbai: Market reports suggest that state-owned carrier Air India may have raised Rs5500 crore ($1.12bn) via bonds in two tenures. According to these reports, the financially beleaguered company has raised funds via 15 year bonds at 9.84 per cent and 20-year bonds at 10.05 per cent, the source said.
A report said though the break-up between the two papers was not immediately available, ICICI Bank was the sole arranger and subscriber to the issue.
Air India recently has received Rs1200 crore ($245 million) rupees by way of equity infusion from the government in 2011/12.
Air India is currently engaged in drawing up plans that will allow it to restructure $4 billion of working capital debt and also implement a turnaround plan that will see the badly struggling carrier return to profitability over four years.
Currently, the airline is finding it difficult to pay staff salaries, service providers and vendors.
.webp)
