NEW DELHI : Lenders to Air India Ltd are set for major relief as Air India Assets Holding Ltd (AIAHL) is expected to repay ₹22,000 crore of its ₹29,464 crore of its working capital debt next month, a move that will also sharply lower the interest obligations of the national carrier, said two people with direct knowledge of the matter.
AIAHL, a special purpose vehicle (SPV) created to warehouse the debt of Air India, will raise the money through a government-guaranteed bond issue, said one of the persons mentioned above, requesting anonymity.
The proceeds of the bond will be used to retire working capital debt parked in the SPV, the person said.
