- Video: Irina Shayk looks sizzling hot in Hercules opposite Dwayne JohnsonKolkata best city to liveLFW 2014: Curtain raiser held in Mumbai, view pics5 Reasons Why You HAVE To Check Out the ‘MARY KOM’Samsung launches affordable phonesUnknown facts of Meena Kumar\'s lifeWhy is the PK poster a trend setterMeet PM Narendra Modi\'s dharmputraList of movies to be released in August 2014Ranbir, Deepika spotted on 'Tamasha' sets
With three more Gold, India moved to fifth spot in the Commonwealth Games 2014 at Glasgow
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):
Sin City: A Dame to Kill For runs into trouble again as a result of Eva Green's nudity in
- Images: Salman Khan, rumored girlfriend Jacqueline celebrate Eid
- Images: Hot Evelyn Sharma finds Varun Dhawan super cute
- OMG! Salman Khan turned down Hercules movie offer for Kick
- Video: Irina Shayk looks sizzling hot in Hercules opposite Dwayne Johnson
- 5 Reasons Why You HAVE To Check Out the ‘MARY KOM’
- Tamanchey Trailer out: Richa Chadda back as hottest burglar
- KICK reaches the 200Cr mark worldwide in the first week!
- Unknown facts of Meena Kumar's life
A naked man was walked on leash with something stuffed inside his anus
Samsung has launched three new smartphones priced below Rs 10,000 range.