Air India lenders offer Rs 35,000 crore in loan to Tata-promoted Talace

Lenders to Air India have offered to extend more than Rs 35,000 crore to the Tatas at a weighted-average yield of 4.25% – the rate at which the sovereign borrows for a year, said people aware of the matter.

Tata Sons-promoted Talace, which will be taking over Air India following privatisation, had invited bids for a one-year general purpose loan of ₹23,000 crore from the airline’s existing lenders.

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This includes ₹18,000 crore for taking over Air India’s debt and an additional ₹5,000 crore for initial operating costs, as reported previously. Talace had been declared the successful bidder for Air India in October.