Indian national airline raising $1 bln loan - report
MUMBAI (Reuters) - State-owned National Aviation Co of India Ltd (Nacil), which operates Air India, is raising about $1 billion loan from JPMorgan Chase & Co to fund its fleet expansion programme, the Mint newspaper reported on Monday.
The 11-year loan is guaranteed by the U.S. Export-Import Bank, the paper said, citing two bankers familiar with the transaction.
"Nacil had floated a tender to raise $1.06 billion to buy 10 Boeing planes. It is getting this loan from JPMorgan at attractive interest terms," it quoted an unnamed official from the ministry of civil aviation as saying.
The loan was being raised at around 100 basis points above the London inter-bank offered rate and may help the cash-strapped airline save about $1 million a month in interest costs, the paper said.
Air India has been struggling after it posted $875 million loss in the fiscal year ended March and has sought a government bailout.
Kalpana Morparia, chief executive officer of JPMorgan's India operations, declined comment, the paper said, while a spokesmam for Nacil could not be immediately reached by Reuters.
The airline will use the loan to buy seven aircraft from Boeing for its international operations and three for its domestic routes, the paper said.
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