Air India announces USD475m bridge loan from Standard Chartered Bank

Air India reportedly announced a USD475 million bridge loan from Standard Chartered Bank to finance the acquisition of three B777 aircraft (The Economic Times, 11-May-2010). The interest rate is 375 basis points over LIBOR. The carrier is seeking a letter of comfort from the Indian Government to convert this short-term loan into a long-term loan to reduce interest costs. Air India received the first of the three B777s on 30-Apr-2010, with the next two deliveries due by the end of May-2010 and Jun-2010. The carrier's fleet comprises 17 owned B777s and four leased B777s.