Air India Assets Holdings To Raise Rs 22,000 Crore Through Bonds
Air India Assets Holdings Ltd (AIAHL) will issue bonds worth Rs 22,000 crore in the coming weeks, with the first tranche worth Rs 7,000 crore set to hit the market on September 16, according to a senior official.
AIAHL -- a special purpose vehicle of national carrier Air India -- is planning to raise the amount by issuing bonds with different tenures.
As part of efforts to clean up the balance sheet of Air India, which has a debt burden of more than Rs 58,000 crore, little over half of the amount is to be repaid by way of proceeds from the issuance of bonds by AIAHL.
The senior official told PTI that AIAHL would issue bonds worth Rs 7,000 crore on September 16.
These bonds would have a tenure of three years and three months.
Banks and mutual funds are expected to participate in the first tranche of the bond offering, the official added. AIAHL would issue 10-year bonds worth Rs 15,000 crore in the coming weeks.
The proceeds from the bond offering would be used to repay Air India's debt, the official said.
As the debt-laden national carrier is set for disinvestment, NCDs worth little over Rs 7,400 crore in the name of Air India would be novated to AIAHL.
While it would be the first time that AIAHL would be issuing bonds, Air India has issued bonds on earlier occasions and the last such issue was worth around Rs 7,400 crore done in 2012.
When AIAHL was set up last year, the plan was to transfer Rs 29,464 crore of Air India's debt to the special purpose vehicle. Now, AIAHL would raise the money and that would be used to repay the airline's debt, the official said.
In February, the Cabinet gave its ex-post facto approval for the creation of the AIAHL and associated activities for the disinvestment of Air India and its subsidiaries/ joint ventures.
AIAHL has been created for warehousing accumulated working capital loan not backed by any asset along with four subsidiaries, non-core assets, painting and artefacts and other non-operational assets of the airline, an official said in February.
The four subsidiaries are Air India Air Transport Services Ltd (AIATSL), Airline Allied Services Ltd (AASL), Air India Engineering Services Ltd (AIESL) and Hotel Corporation of India Ltd (HCI).Â
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
