Air India arm to raise Rs 22k crore via bonds

New Delhi: Air India Assets Holdings Ltd (AIAHL) will issue bonds worth Rs 22,000 crore in the coming weeks, with the first tranche worth Rs 7,000 crore set to hit the market on September 16, according to a senior official.

AIAHL -- a special purpose vehicle of national carrier Air India -- is planning to raise the amount by issuing bonds with different tenures.

As part of efforts to clean up the balance sheet of Air India, which has a debt burden of more than Rs 58,000 crore, little over half of the amount is to be repaid by way of proceeds from the issuance of bonds by AIAHL.

The senior official told PTI that AIAHL would issue bonds worth Rs 7,000 crore on September 16. These bonds would have a tenure of three years and three months.

Banks and mutual funds are expected to participate in the first tranche of the bond offering, the official added.