Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is lending $120 million to Tata group’s Air India to purchase an A350-900 aircraft from Airbus.
The transaction was done at Gujarat International Finance Tec-City (GIFT City) with the assistance of Air India’s wholly owned subsidiary AI Fleet Services Ltd. It is part of Air India’s order of 470 aircraft placed earlier this year, said SMBC in a statement.
The aircraft secured debt facility was closed through SMBC’s Singapore Branch. Air India has also put in the equity component for the aircraft. SMBC was the sole bank in the transaction.
