MUMBAI: Japanese lender SMBC on Wednesday stated the Tata Group-owned Air India has borrowed USD 120 million from it for buying a wide-body plane from Airbus. The transaction has partly financed Air India’s buy of an A350-900 plane from Airbus, which was delivered in October 2023, in line with an official assertion.
SMBC stated it is a secured debt facility via its Singapore department, whereas Air India’s GIFT Metropolis-headquartered arm AI Fleet Companies is the borrower.
The acquisition is a part of the mega announcement by the Tatas to purchase a complete of 470 plane from Boeing and Airbus, and AI has additionally contributed fairness.
Based on some studies, an Airbus A350-900 plane is priced above USD 300 million.
“SMBC Group is happy to increase upon its long-established relationship with Tata Group via this deal,” the lender’s nation head for India Hiroyuki Mesaki stated.
He added that that is the the financial institution’s first-of-its-kind transaction for plane finance lease.
Nipun Aggarwal, Air India’s chief industrial and transformation officer, stated the plane was among the many first deliveries within the firm’s giant plane order introduced earlier this yr.
“This transaction can be a significant step in increasing our plane financing enterprise via GIFT Metropolis, India’s first Worldwide Monetary Companies Centre (IFSC),” Aggarwal added.
The SMBC assertion stated India is the fifth largest aviation market globally, and the sector is anticipated to proceed rising considerably on tailwinds like emergence of a big and rising middle-class prepared to journey.
SMBC stated it is a secured debt facility via its Singapore department, whereas Air India’s GIFT Metropolis-headquartered arm AI Fleet Companies is the borrower.
The acquisition is a part of the mega announcement by the Tatas to purchase a complete of 470 plane from Boeing and Airbus, and AI has additionally contributed fairness.
Based on some studies, an Airbus A350-900 plane is priced above USD 300 million.
“SMBC Group is happy to increase upon its long-established relationship with Tata Group via this deal,” the lender’s nation head for India Hiroyuki Mesaki stated.
He added that that is the the financial institution’s first-of-its-kind transaction for plane finance lease.
Nipun Aggarwal, Air India’s chief industrial and transformation officer, stated the plane was among the many first deliveries within the firm’s giant plane order introduced earlier this yr.
“This transaction can be a significant step in increasing our plane financing enterprise via GIFT Metropolis, India’s first Worldwide Monetary Companies Centre (IFSC),” Aggarwal added.
The SMBC assertion stated India is the fifth largest aviation market globally, and the sector is anticipated to proceed rising considerably on tailwinds like emergence of a big and rising middle-class prepared to journey.
