January 20, 2014 / 11:59 AM / 4 years ago

Air India seeks up to $230 mln loan for Dreamliner buy

An Air India Boeing 787 Dreamliner prepares for a flying display, during the 50th Paris Air Show, at the Le Bourget airport near Paris, June 20, 2013. REUTERS/Pascal Rossignol/Files

NEW DELHI (Reuters) - Air India Ltd is seeking a bridge loan of up to $230 million for taking delivery of two Boeing(BA.N) 787 Dreamliner aircraft from an ongoing order, according to a tender document on the carrier’s website.

Air India, which is due to take delivery of two 787 aircraft in February and March, has invited offers from banks or financial institutions to arrange the bridge financing for a period of six months to one year.

The state-run airline is offering the aircraft as security, and will repay the loan after it concludes a sale and leaseback arrangement, it said, adding there will be no government guarantee for the loan.

The two new aircraft will take Air India’s Dreamliner fleet to 14 by March. The carrier currently operates 11 of the jets and has a total 27 on order.

Reporting by Devidutta Tripathy; Editing by Sunil Nair

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