Business

Air India Assets Holding Ltd (AIAHL) second bond issue oversubscribed

Sentinel Digital Desk

New Delhi/Mumbai: Air India on Thursday said that the second Bond issue of the special purpose vehicle (SPV) Air India Assets Holding Ltd (AIAHL) has been fully subscribed, a senior Air India official said.

The 10-year tenure bonds of AIAHL worth Rs 1,000 crore with a “green shoe” option of Rs 6,000 crore was fully subscribed at the rate of 7.39 per cent.

The official said that the company received bids worth Rs 21,736 crore and has decided to accept the entire issue of Rs 7,000 crore.

The special purpose vehicle of Air India for transferring part of its debt and assets, had earlier raised another tranche of Rs 7,000 crore through a bonds issue. The bond issues will help disinvestment-bound Air India pare away some of its debt.

In an earlier decision, the government had decided to transfer debt of Rs 29,464 crore, along with other non-core assets, to the newly-created AIAHL to attract bidder interest for the carrier.

Air India has a total debt of about Rs 60,000 crore and nearly half of it is to be repaid by the proceeds from issue of bonds by AIAHL.

Air India launches flights on Amritsar-Stansted route: Air India will launch flights on the Mumbai-Amritsar-Stansted route thrice a week from October 31 to mark the 550th birth anniversary of Guru Nanak Dev, an official said on Thursday.

The 256-seater Boeing 787 dreamliner aircraft will connect Amritsar to Stansted in London to facilitate Sikh pilgrims visiting Punjab on the occasion of the birth anniversary of Guru Nanak Dev, Air India General Manager Ramn Babu told the media here. It would operate on Monday, Thursday and Saturday. (IANS)