Air India has issued a tender seeking proposals for sale and leaseback or commercial loans on six Boeing 787-8s.
The aircraft were delivered to the carrier, understood to be under bridging finance, between March and December 2014.
Under the sale and leaseback option, the carrier has set a reserve sale price of $120 million per aircraft. It would then lease back the aircraft for 12 years, during which it will not contribute to any maintenance reserves.
With the loan option, Air India is seeking a finance facility for up to $720 million covering all six aircraft, in either US dollars or Indian rupees over a 12 year term. This will have either fixed or floating interest rates.
The airline also notes that it will also look at “any innovative structured finance package including bonds issue that may be offered to reduce the cost of financing”.
The Indian government will provide sovereign guarantees on lease and interest payments. It has applied for US Exim Bank guarantees on the commercial loan option.
Proposals for both options are to be presented separately, with bids due by 27 April.
Source: Cirium Dashboard
