Delhi Air India secures 215 million refinancing loan
Air India has raised about 215 million dollars through a six-year loan arranged in Gujarat’s GIFT City, signalling renewed confidence in India’s aviation sector despite recent turbulence. The financing, backed by major lenders including Bank of India and an international bank, will be used to refinance earlier short-term debt tied to the acquisition of wide-bodied aircraft.
a hub where Officials familiar with the development confirmed that the loan is priced at around 168 basis points over the secured overnight financing rate, making it competitive by international standards. Importantly, this marks the first time a leading state-owned lender has acted as a mandated lead manager for a deal originating out of GIFT City, highlighting the growing role of India’s international finance hub in global aviation finance.
The proceeds of the loan are expected to refinance debt incurred during the purchase of six Boeing 777-300ER aircraft, aircraft that form the backbone of Air India’s long-haul fleet. Analysts believe this refinancing not only reduces repayment pressure but also allows the airline to better align its financial commitments with long-term sustainability goals.
The move comes against the backdrop of a difficult summer for the aviation industry, after a major accident temporarily dampened fund-raising talks. However, the successful closure of this loan underscores lenders’ continued faith in the resilience of Indian aviation. Experts argue that this deal illustrates how aviation finance, when structured carefully, can encourage long-term sustainability and stability for carriers in emerging markets.
For Air India, the transaction represents more than just debt refinancing. Industry experts note that leveraging GIFT City financing provides a template for future transactions that can be both cost-efficient and environmentally strategic. With global aviation under pressure to reduce its carbon footprint, stronger financing structures can ensure fleet upgrades and operational investments align with sustainability targets.
The deal also highlights how Indian financial institutions are taking a greater role in global-scale lending, particularly for industries like aviation that carry deep socio-economic impact. As cities across India seek to balance connectivity with climate concerns, transparent financial strategies such as this loan could set the tone for equitable, greener urban futures.Industry observers caution that debt-financed growth must remain balanced with operational efficiency. Yet, the current transaction reflects a promising step in integrating sustainable financial practices with national aviation ambitions. It also reinforces Delhi’s position as policy, finance, and connectivity converge to drive economic transformation.
