National carrier Air India is seeking offers from banks — both national and foreign — and financial institutions to raise $50 million for financing the advance payment of three Boeing B787-8 planes (Dreamliners) it plans to induct into its fleet in the coming months, said an airline tender document, which was uploaded on its website on Wednesday. The flag carrier is seeking for a loan offer by April 16.
“AI (Air India) is pleased to invite your bank/financial institution to submit a fully underwritten offer for pre-delivery payment requirements (PDP) for three B787-8 aircraft (aircraft no16 to 18),” said the tender document.
“As per the terms of the agreement with Boeing, AI is required to pay 10% of the gross cost of the aircraft as advance payment 12 months prior to delivery,” it said.
The airline further added that the repayment will be done between June and November 2014. The loan, meanwhile, would be repaid from delivery financing process.
Air India had in 2006 placed orders for 27 Dreamliners as part of its plan to buy 68 passenger jets worth about $8.1 billion, at the then list price for the aircraft.