NACIL to select banker for $1-bn loan in a month

Mumbai, Mar 24 (PTI) National Aviation Company of India (NACIL) today said that it would take a decision on mandating a banker for raising $1.06-billion loan to purchase aircraft within a month.

"We are evaluating bids from various parties and we will zero in on our choice within the next 3-4-weeks," a senior NACIL official told PTI here.

NACIL has recieved offers from 12 top banks and financial institutions including Goldman Sachs, Citibank, JP Morgan, State Bank of India, ING Vysya, Barclays and Standard Chartered to raise funds for acquiring 10 Boeing aircraft for Air India, the official said.

"The response is very encouraging, particularly considering the liquidity situation," the official said, adding that, "while 85 per cent of the loan is US Exim- guaranteed, the remaining 15 per cent is through commercial borrowings."

NACIL has already raised $3 billion from the international market to purchase 46 aircraft which are now part of its fleet.