Air India has approached financiers again for the financing of four Boeing 787-8 aircraft scheduled for delivery through December this year.
Having secured bridge financing for its first two 787-8s scheduled for delivery later this month, the Indian carrier has invited offers from banks and financial institutions to arrange a bridge loan facility up to $500 million for the induction of the next four aircraft of the type. One aircraft is expected this month while Air India will take another aircraft in September, November and December.
According to the terms of the request for proposal (RFP), Air India needs interim bridge financing for a period ranging between six and 12 months.
The 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 arrangement, says Air India.
Offers have to be submitted by 24 August.
Air India invited banks and financial institutions with a similar RFP in May. 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.