Air India Assets Holding raises another Rs 79.85 billion via bonds

Air India Assets Holding Limited (AIAHL), the special purpose vehicle (SPV) formed for offloading Air India’s existing debt, has issued bonds for the third time raising funds worth Rs 79.85 billion. This bond issue has been oversubscribed with bids worth Rs 217.36 billion received by AIAHL. However, the SPV has the option of issuing bonds worth only Rs 79.85 billion, as these bonds with a face value Rs 10 billion have a 10-year tenure and a greenshoe option of issuing additional bonds worth only Rs 70.64 billion (additional rights endowed to AIAHL for selling more shares than the quantum decided). In September and October 2019, AIAHL raised funds worth Rs 70 billion each through the issuance of bonds, which were oversubscribed and had a similar greenshoe option. With this, the SPV has so far raised funds worth Rs 220 billion to pay off debt, thereby paving the way for Air India’s privatisation.