Chennai: In order to repay a group of its lenders, national carrier Air India is looking to raise Rs 22,000 crore from the bond market, said media reports.
The fund raising will take place in two tranches, with the Rs 7,000 crore bond issue having a three-year maturity period and the Rs 15,000 crore issue will be for 10 years, the report from a financial daily stated.
The carrier is attempting to improve its balance sheet before the government puts up its stake in the beleaguered carrier for sale, it noted.
The Finance Ministry will provide an unconditional guarantee for the Rs 15,000 crore tranche, the report said. But for the Rs 7,000 crore tranche, it has asked Air India to raise the repayment through sale of assets and subsidiaries, it added.
The Ministry will set aside a budgetary allocation to make sure the company is able to clear the loans as per schedule, the report said.
Air India owes nearly Rs 58,000 crore to a group of domestic and foreign lenders.