Air India raises Rs5500 crore via bonds: report

Mumbai: Market reports suggest that state-owned carrier Air India may have raised Rs5500 crore ($1.12bn) via bonds in two tenures. According to these reports, the financially beleaguered company has raised funds via 15 year bonds at 9.84 per cent and 20-year bonds at 10.05 per cent, the source said.

A report said though the break-up between the two papers was not immediately available, ICICI Bank was the sole arranger and subscriber to the issue.

Air India recently has received Rs1200 crore ($245 million) rupees by way of equity infusion from the government in 2011/12.

Air India is currently engaged in drawing up plans that will allow it to restructure $4 billion of working capital debt and also implement a turnaround plan that will see the badly struggling carrier return to profitability over four years.

Currently, the airline is finding it difficult to pay staff salaries, service providers and vendors.