Air India will borrow Rs 18,000 crore from the State Bank of India (SBI) and Bank of Baroda (BoB) to refinance its existing debt over the short term, a report in the Economic Times (ET) said. The borrowing will be in the form of one-year loans and the Tata Group-owned airlines may go for longer loans later.
“Tatas decided to continue with the existing borrowing arrangement for another year, though they will eventually make a long-term debt strategy. The loans are at a higher rate than last time, mirroring the sharp rise in the interest rates in the last one year,” a person aware of the matter told ET.
