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Foreign banks to raise $500mn for Air India Dreamliners
July 25, 2013, 11:07 am

[AP]

In the last 10 months Air india has received seven Dreamliners [AP]

Deutsche Bank and British lender Investec Bank will raise up to $500 million for five Boeing Dreamliners for Air India.

“We have got financing for all the five Dreamliners and have mandated Deutsche Bank and Investec Bank for arranging the bridge loan for this,” a senior Air India official told the Indian news agency PTI on Thursday.

On June 26 Air India invited bids from banks and financial institutions to arrange bridge finance of up to $500 million to pay for five Boeing 787s.

A bridge-loan is typically used to meet payment commitments until a long-term financing option is arranged.

In the last 10 months the Indian carrier has received seven Dreamliners.

The deal is part of the 68 aircrafts that Air India ordered from Boeing in January 2006, which includes 27 Dreamliners, 41 B-777s and B-737-800s.

Air India also ordered 43 planes from Airbus, which have already been inducted in its fleet.

Source: PTI