LIC sanctions Rs 400 cr for Jet's fleet buy plan

Life Insurance Corporation (LIC) has sanctioned Rs 400 crore to Jet Airways for fleet acquisition, minister of state for finance S S Palanimanickam said today.

"LIC has informed that it has sanctioned Rs 400 crore for the pass through certificate (PTC) issued by a special purpose vehicle (JUS Trust) having UTI Bank as trustee to facilitate acquisition of new fleet by Jet Aiways," he said in a written reply to a question in the Rajya Sabha today.

Out of the above amount, Rs 305.12 crore has been drawn by the SPV. The subscription carries an interest rate of 11.7% per annum redeemable in 48 quartely instalments starting three months from the date of allotment of the respective PTC.