Air India lenders to offer ₹35,000 crore in loan to Talace: Report

The lenders are likely to be informed by Tata about the allocation in the first week of January. 

According to a report by the Economic Times, the lenders of Air India have offered ₹35,000 crore to the Tata Sons promoted Talace. As Talace won the bid for Air India it had invited the existing lenders of the Airlines for a one-year general purpose loan of ₹23,000 crore. The weighted average yield will be 4.25%.

“It is an overwhelming response considering that the loan is unrated and unsecured and yet the pricing is near sovereign,” an executive at one of the lenders told the Economic Times. Commercial banks including State Bank of India, Bank of Baroda, Union Bank of India & Punjab National Bank, have approved credit limits of  ₹12,000 crore to ₹3,000 crore.

Talace had offered ₹18,000 crore in its winning bid. Tata will pay ₹2,700 crore in cash & will take over ₹15,300 crore of the airline’s debt. As per the report, the total debt of Air India as of August 31 stood at ₹61,560 crore. The lenders are likely to be informed by Tata about the allocation in the first week of January.

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