State-owned Air India plans to raise up to $1.1 billion including $300 million for its subsidiary Air India Charters Ltd to fund aircraft acquisition and meet its working capital requirements.
The airline has invited proposals from the banks and financial institution to raise these funds.
"Air India invites offers from banks/financial institutions to arrange bridge financing up to $500 million for induction of 4 B787 aircraft," according to a document posted on the airline's website.
The airline needs interim bridge financing for a 6-12 month period to acquire four
Dreamliner aircraft, which are to be delivered to it between June December 2012, it said.
However, the funds sought to be raised would not be covered by a sovereign guarantee and instead the airline would offer the aircraft or some other equivalent collateral as security, the document stated, adding airline would repay the loan after selling and leasing back the four planes.
Besides, the airline has also floated an "invitation of offers" for raising funds up to $600 million through the external commercial borrowing (ECB) route to meet its working capital requirements.
It is seeking to raise funds for at least three-year period at either a fixed or floating rate, according to the offer document.
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