Air India Assets Holdings Ltd (AIAHL), a special purpose vehicle, has raised Rs 7,000 crore through a bond issue, which was subscribed nearly three times.
AIAHL had come out with its maiden bond issue for Rs 1,000 crore with an option to retain an additional subscription of up to Rs 6,000 crore. The bonds are fully-backed by the government.
The funds, raised at a lower rate of 6.99 per cent, will be used to partly repay the airline’s debt of over Rs 58,000 crore.
The private placement got a good response from institutional investors with AIAHL receiving bids of Rs 20,830 crore.
