Lenders to Air India have offered to extend further than Rs 35,000 crore to the Tatas at a weighted-average yield of 4.25-the rate at which the autonomous borrows for a time, said people sensible of the matter. As per the report, Talace had already invited bids for a one- year general purpose loan of Rs 23,000 crore from Air India’s being lenders.
Lenders, involving State Bank of India (SBI), Bank of Baroda, Punjab National Bank and Union Bank of India, have approved credit limits between Rs 12,000 crore to Rs 3000 crore, as per the report.
Tata is probable to inform all lenders about the allotment in the first week of January and draw sanctioned limits between January 10 and 15. Utmost banks have a policy of pricing unrated and insecure loans above the marginal cost of funds-based lending rate (MCLR).
“Tatas had originally planned to complete the refinance of the Air India loan before Christmas, ahead of January 23, which is the long-stop date to close the Air India deal with the government,” said by the person cited.
The new debt raised by Talace will replace the earlier credit raised by Air India at 9-10%. Talace had offered ₹18,000 crore as part of its winning bid-₹15,300 crore for Air India’s being debt and ₹2,700 crore to be paid as cash to the government.
The deal with the government doesn’t include land and structures. As per the agreement, Tata Sons will retain all the workers of Air India, at least for a year.
