Air India's leasing arm secures $215 mn term loan from StanC, BoI

AI Fleet Services IFSC (AIFS), a leasing subsidiary of Tata Group–owned Air India based in GIFT City (Gujarat International Finance Tec-City), has secured a $215 million seven-year amortising term loan from Standard Chartered Bank and Bank of India to finance six Boeing 777-300ER aircraft that will be leased to Air India.

 

Milestone aviation finance deal at GIFT City

 

This marks the first-ever commercial aircraft financing transaction structured with a GIFT City borrower, setting a precedent for India’s emerging aviation finance ecosystem.

 

Air India is currently undergoing a fleet renewal and expansion programme to support its transformation into a world-class global airline. The carrier has embarked on a five-year transformation journey, with an order for 570 new aircraft placed across Airbus and Boeing.

 

AIFS to play a key role in Air India’s fleet expansion

 

Sanjay Sharma, Chairman of AIFS and Chief Financial Officer of Air India, said,

“Air India has embarked on a five-year transformation journey, placing an order for 570 aircraft, and GIFT City will be important for financing these aircraft.”

 

Standard Chartered and Bank of India lead the transaction

 

Standard Chartered acted as the structuring bank for the transaction, while both Standard Chartered and Bank of India jointly underwrote the deal as Mandated Lead Arrangers and Bookrunners.

 

“We believe the term loan facility to AI Fleet Services (AIFS), a subsidiary of Air India, will provide a fillip to growing the aviation finance segment in India,” said P.D. Singh, CEO, India and South Asia, Standard Chartered Bank.

 

“The first-ever commercial aviation financing at GIFT City is a milestone and reinforces GIFT City’s position as an aviation finance hub of global repute,” Singh added.