- PICS: Prachi Desai doing catwalk7 most popular food mythsSalman-Aishwarya replaced by Ranveer-DeepikaPICS : What makes Yuvi specialPICS : Bollywood's smoking actressesRanbir, Katrina spend night togetherBollywood at Bobby Chawla funeralHT Mumbai\'s most stylish awardBedroom secrets for happy married lifeSachin, Lata falicitated during an event
Cristiano Ronaldo has topped the world's wealthiest player with a fortune of 122 million p
Government helps Air India to pay debt Last Updated : 09 Oct 2012 11:11:34 PM IST File photo of Air India flight.
The government on Tuesday decided to guarantee Air India's non-convertible debentures (NCDs) worth Rs 7,400 crore, which will pave the way for the ailing carrier to pay off its short-term loans.
"The Ministry of Finance has approved the unconditional and irrevocable guarantee for Air India NCD bonds today for Rs 7,400 crore," an Air India spokesperson said.
Air India is burdened with a huge debt of over Rs 43,000 crore, which is a mix of long and short-term debt and working capital loans.
The airline will now credit rate the NCD bonds based on the guarantee issued by the government. The national carrier was banking heavily on NCDs sale to ease the interest cost on the expensive working capital loans.
"The proceeds of the NCD would be used to repay the short- term working capital facility availed by Air India from the 19 banks," the official said.
The debt-laden national carrier needed to issue the bonds as part of its financial restructuring plan but it had earlier hit a roadblock after the Finance Ministry refused to give "unconditional guarantee".
The NCD would have a tenure of 19 years and priced at a spread over the applicable government security. The government has capped the spread at 70 basis points, the official said.
" Air India would also be able to save on the interest cost by retiring this debt. The Banks would now have a reduced exposure to Air India after the said short-term loan is paid out by the national carrier," he said, adding the airline was targeting to achieve this within two to three weeks from the date of receipt of the sovereign guarantee.
Post Your Comment (0 posted):
Bollywood celebrities,it seems are getting much interested in sports these days.
- PICS: Prachi Desai doing catwalk
- Khloe K speaks about her vagina on camera
- Salman-Aishwarya replaced by Ranveer-Deepika
- Sonakshi copies boxer Laila Ali’s look in Holiday
- Why is Deepika jealous of Kangana?
- Kochadaiiyaan Theatrical Trailer: Watch now
- PICS : Bollywood's smoking actresses
- Nargis joins Abraham-Dhoni team for ad
To experience a massage with a difference, tourists are flocking to an elephant camp in Th
The much-talked about Nokia Android mobile phone has finally arrived in Indian market.