Air India looks to raise ₹225 crore to refinance its debt

NEW DELHI : National carrier Air India Ltd plans to raise up to ₹225 crore through a short-term loan from domestic lenders by 31 January to refinance an earlier loan, the airline said in a tender document on Monday. The loan will carry a sovereign guarantee and lenders will have to submit their bids by 27 January.

Proceeds of the loan, whose tenure is a year, will be utilized for refinancing earlier loans, and the airline will offer 18 of its aircraft as security, according to the document, a copy of which was reviewed by Mint.

The development comes amid the Centre’s plans to privatize the airline. The government is selling its 100% stake in Air India, which has incurred losses since 2007. Tata Group and an employee group headed by a board member are among the entities that have put in preliminary bids for the airline.