Air India Secures $215 Million from StanChart and Bank of India

Air India has raised approximately $215 million in refinancing from Bank of India and Standard Chartered Plc, as per the news reports. The funding, arranged through Gujarat International Finance-Tec City (GIFT City), reflects the carrier’s ongoing efforts to strengthen its balance sheet amid a challenging operating environment.

Loan Structure and Purpose

As per the news reports, the 6-year loan is priced at about 168 basis points over the secured overnight financing rate (SOFR). Proceeds from the facility will be used to refinance short-term debt previously tapped to fund the acquisition of six Boeing 777-300ER aircraft. Bloomberg had earlier reported in July that Air India was in talks to secure around $200 million, with the final loan amount exceeding that estimate.

The loan marks an important milestone for Bank of India, which acted as a mandated lead manager for the first time in a GIFT City-based loan transaction. The involvement of Standard Chartered further underscores global lenders’ interest in India’s fast-expanding aviation sector.

Market Context and Challenges

The financing deal comes after a difficult period for Air India, which had faced delays in fundraising efforts following a tragic plane crash in June, one of the worst aviation accidents in the country in recent years. Despite this, the airline has continued to focus on modernising its fleet and restructuring its finances under its new ownership.

Read More: Air India Teams Up with AVIS to Offer Chauffeur Services Across 17 Cities!

Conclusion

By securing this $215 million refinancing package, Air India has not only strengthened its debt profile but also highlighted the increasing role of GIFT City as a hub for international financial transactions. The deal demonstrates growing lender confidence in Air India’s turnaround strategy while also marking a landmark role for Bank of India in global syndicated financing.

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