NEW DELHI : Air India Assets Holding Ltd (AIAHL), a special purpose vehicle created by the government to park about half of the airline’s debt, plans to raise about ₹8,064 crore through a government-guaranteed bond issue this week, said a senior airline official.
Proceeds of the issue will be used to repay a portion of the airline’s debt, said the official, who asked not to be named.
The fundraise is part of Air India’s plans to shift ₹29,464 crore debt from its balance sheet to AIAHL. Once the debt is transferred, AIAHL will be liable for repayment. The official said the bond issue and subsequent transfer of debt to the SPV would reduce Air India’s monthly interest expenses by about ₹2,600 crore from 1 November.
