AIAHL second bond issue oversubscribed

Mumbai: Air India’s second Bond issue of the special purpose vehicle (SPV) Air India Assets Holding Ltd (AIAHL) has been fully subscribed, an 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%.

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.

Free Press Journal

www.freepressjournal.in