Air India has secured interim financing from Deutsche Bank and Investec to cover deliveries of five new Boeing 787-8s.
The two banks will provide the airline with a $500 million loan to cover delivery payments on the five aircraft, which will be delivered between July and October, an Air India spokesman tells Flightglobal Pro.
The two banks will provide the loan for up to 12 months, the spokesman adds, after which the aircraft are planned to be refinanced via sale and leaseback (SLB) arrangments. The banks will also have first right of refusal on the SLBs, provided their offer at least matches the lowest offer from another financier.
Flightglobal's Ascend Online Fleets database shows that Deutsche Bank does not finance any aircraft in Air India's fleet, but Investec has financed eight Airbus A320s and two Boeing 747-400s.