Air India has further extended its deadline for proposals on bridge financing for four Boeing 787-8s scheduled for delivery later this year.
Having secured bridge financing on its first two 787-8s - due to arrive this month - the Indian carrier recently invited offers from banks and financial institutions to arrange a bridge loan facility up to $500 million for the induction of the next four units. One of those aircraft is also expected later this month, while Air India will receive the remaining aircraft in September, November and December.
According to the terms of the request for proposal (RFP), Air India needs interim bridge financing for a period ranging between six and 12 months.
The loan facility will not be covered by a guarantee from the Indian government, but Air India will offer the aircraft as security or some other equivalent collateral security. The bridge loan facility will be repaid on conclusion of a sale and leaseback arrangement, says the carrier.
Offers have to be submitted by 7 September under the new deadline.
Air India invited banks and financial institutions with a similar RFP in May. It approached the market in January for a $230 million secured loan facility covering its first two 787 deliveries. At the time, Air India said it will sell the aircraft upon delivery and lease them back for a period of 12 years with an option to extend.