Air India's arm raises Rs 7,000 cr from bond market to dilute debt burden

The bond was floated at 6.99%, around 86 bps higher than the three-year govt bond yield, to be followed by a Rs 15,000 crore bond issue in two weeks

A special purpose vehicle of state-owned Air India has raised Rs 7,000 crore from the bond market, in a major exercise to clean up the balance sheet before privatisation. 

The bond was floated by Air India Asset Holdings (AIAHL), which houses around Rs 26,500 crore of Air India’s Rs 60,000 crore debt and non-core assets like real estate. 

Among the top three subscribers were Trust Capital, ICICI Bank, and State Bank of India (SBI). While Trust Capital and ICICI each subscribed to Rs 2,000 crore each, SBI subscribed to Rs 1,100 crore.

The bond was floated at 6.99 per cent, around 86 basis