Air India has approached financiers with a request for proposal for the long-term financing of seven Boeing 787-8s priced between $109 million and $111 million, CAO understands.
The carrier is seeking an US Ex-Im guaranteed facility with a 12-year term (with an exposure fee of 4%) as well as a commercial facility with terms ranging from five to seven years.
Air India says it will also look into any 'innovative structured financing package' that may be offered to reduce the cost of financing including sale and leaseback option for a period of 10 to 12 years.
The $832.26 million financing transaction also covers two GENX-1B64 spare engines. According to the carrier, the first two 787-8s will be delivered in October, followed by three aircraft in November. The remaining two aircraft are scheduled for December.
Air India says the net cost of the first October delivery is $109.56 million, the second is $109.76 million. The November deliveries are priced at $110.04 million, $110.32 million and $110.60 million, respectively. The two December deliveries are priced at $111.15 million each.
The two GENx spare engines will be delivered in October and have a $16.1 million price each, according to Air India.
The seven 787-8s are part of a 50-aircraft purchase agreement signed with Boeing in December 2005, which also includes eight 777-200LRs, 15 777-300ERs and 20 787s. The financing covering the first 20 aircraft, which have been delivered, was structured in four tranches of seven, three, seven and three aircraft.
Bids need be submitted by 8th August.
Last month Air India approached the banking market for pre-delivery payments financing of a second batch of aircraft (aircraft number 8th to 14th). The carrier is seeking advance payment of up to $122.34 million.