Air India confirmed JPMorgan Chase would underwrite a USD1.1 billion, 11-year loan to replace bridge financing from Standard Chartered for the acquisition of seven B777s (for Air India) and three B737-800s (for Air India Express) and a spare engine (Economic Times, 15-Feb-2010).
Air India: “We have negotiated good interest rates, at least 3% lower than the applicable interest rates. Air India will save as much as USD30 million in interest costs alone in this transaction. With this funding, we have concluded financing for 35 of our newly-ordered aircraft which has resulted in a total exposure of USD2.6 billion of debt. We have also invited bids for financing another three Boeing aircraft. These bids will be closed later this month”, unnamed official. Source: Economic Times, 15-Feb-2010.
JPMorgan Chase: “We are the sole underwriters of the deal; the entire exposure is on our books. It is a well-structured transaction and our risks are adequately covered as it is a large, long-tenor loan,” Piyush Agarwal, Executive Director-Corporate Banking. Source: Economic Times, 15-Feb-2010.