Air India to prepay NCDs aggregating ₹12,900 cr

Our Bureau Mumbai | Updated on November 24, 2021

Air India’s NCDs have five distinct International Securities Identification Numbers

Air India is planning to pre-pay non–convertible debentures (NCDs) aggregating ₹12,900 crore.

The national carrier’s NCDs have five distinct International Securities Identification Numbers. The interest rate on these debentures ranges from 9.08 per cent to 10.05 per cent.

Also read: Maharaja takes off

Air India’s Board will meet on November 29, 2021 to approve the pre-payment of NCDs. Giving approval to amend the terms in the respective Debenture Trust Deed (DTD) is also on the agenda of the board meeting.

This move to pre-pay NCDs comes in the backdrop of the Tata group emerging as the successful bidder of the divestment process of the national carrier.

Tatas winning bid for Air India

The Tata group’s holding company, Tata Sons through its wholly-owned subsidiary Talace Pvt Ltd had submitted the winning bid of ₹18,000 crore as the enterprise value of Air India.

Also read: What went behind the sale of Air India?

The Tata Group, in a statement on October 8, 2021, said, “Consequent to the acquisition, the Tatas will own a 100 per cent stake in Air India (a full-service airline operating in domestic and international markets) as also 100 per cent in its subsidiary Air India Express (a low-cost carrier airline that focusses on short-haul international operations, especially in the Middle East market) and 50 per cent in the joint venture Air India SATS (airport services on ground and cargo handling).”

Air India has a fleet of 117 wide-body and narrow-body aircraft and Air India Express has a fleet of 24 narrow-body aircraft.

Published on November 24, 2021

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