Air India extends deadline for 787 bridging loan facility

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Air India has extended the deadline for an interim bridging loan facility to finance the delivery of five Boeing 787-8s by a week to 12 July.

The facility is meant to cover payments for the five 787s, which will be delivered from July. The airline is requesting up to $500 million in loans from banks or financial institutions on a six to 12 month term, according to the tender document.

The loan will be repaid upon the conclusion of a sale and leaseback (SLB) arrangement.

Air India will offer the aircraft as security or equivalent collateral security as an alternative. It has also expressed its preference for a direct loan, without the need to form a special purpose vehicle structure.

The selected bidder will have the right of first refusal to finance the aircraft under an SLB arrangement, on condition that the selected bidder matches the terms and conditions of the lowest bidder for the aircraft sold through SLB.

A request for proposals on the SLB will be issued in due course, the airline adds.

Tender documents show that the original deadline to bid for the facility has been extended from 5 to 12 July.

Flightglobal's Ascend Online Fleets database shows that Air India will receive five 787s starting in July, one each in July (MSN36286) and August (MSN36275), followed by three in October (MSN36274, MSN36280 and MSN36279).