Air India is seeking to raise working capital loans up to $1 billion from overseas markets, after the government approved the airline’s turnaround plan that will allow it to borrow up to $1 billion annually through the external commercial borrowing (ECB) route.
The airline has issued an "invitation of offers" for one-year funds at either a fixed or floating rate, and is open to any innovative structured financing package which reduces the financing cost.
The airline’s turnaround plan, which includes a financial restructuring plan (FRP), was approved by the government last week. The plan includes a Rs 30,000-crore equity infusion by the government over the next eight-year period and a debt recast of Rs 21,200 crore.