Air India seeks new $250m bridge financing for two 787s

Singapore
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Air India has issued another request for proposal (RFP) for the financing of two of its incoming Boeing 787 aircraft.

According to the terms of the proposal, the state-owned carrier needs interim bridge financing for a period between six and 12 months in order to take delivery of its fourth and fifth 787 in November.

It is now inviting banks and financial institutions to offer bridge financing of up to $250 million.

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.

Offers have to be submitted by 9 November.

Air India has secured financing for its first three 787s that were delivered in September and October. It has since issued multiple RFPs for the financing of its next batch of 787s.