Air India Assets Holding Ltd (AIAHL), a special purpose vehicle created by the Indian government to hive off a part of Air India's massive debt, raised another INR70 billion rupees (USD986 million) through bonds.
The Economic Times has reported that the bonds issue was oversubscribed with bids totalling more than INR210 billion (USD2.96 billion). It was already the second tranche of INR70 billion worth of bonds.
Tata Sons is eyeing further expansion of its airline portfolio and has started talks with the government regarding the acquisition of a stake in Air India.
In total, the government decided to transfer INR295 billion (USD4.2 billion) debt from Air India to AIAHL, together with the carrier's non-core assets, mostly real estate. The amount is less than half of the airline's total debt.
TATA INTERESTED IN AIR INDIA
Tata Sons is eyeing further expansion of its airline portfolio and has started talks with the government regarding the acquisition of a stake in Air India.
Tata Sons has registered its interest regarding the acquisition of a stake in Air India. India government is now mulling a sale of a 95% stake.
Tata Sons already holds 51% stakes in Vistara, a joint venture with Singapore Airlines, and AirAsia, a joint venture with AirAsia Group.