Mumbai/New Delhi: Air India Assets Holding Ltd., a special purpose vehicle that holds part of the state-owned carrier’s debt and assets, is planning its first rupee-denominated bond sale to refinance some debt of the airline. Air India Assets is aiming to raise ₹22,000 crore ($3.2 billion) and has sought fee bids from bankers on Wednesday, people familiar with the matter said. Out of the total, the company plans to raise ₹14,500 crore through notes that will have a sovereign guarantee while the nation’s government will fully service the remaining. The airline, with a total debt of $8.4 billion, lost ₹7635 crore in the year to end-March, according to provisional estimates. But the sale didn’t go ahead as investors were worried that planned privatization of Air India could dilute the sovereign backing for the notes.

Source: Mint July 02, 2019 13:41 UTC