Air India has approached banks and financial institutions with a new request for proposal (RFP) for the financing of its next batch of Boeing 787 aircraft.
The state-owned carrier says it needs up to $500 million bridge financing with six to 12-months' terms to accept delivery of four 787-8 due to be delivered in June, September, November and December 2012.
Under the terms of the RFP, the bridge loan facility will not be covered by a Government of India guarantee 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 agreement, says Air India.
Offers have to be submitted by 24 May.
Air India will receive its first two 787-8s in May and June and the Indian carrier has secured bridge financing for its first two aircraft.
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.