October 09, 2012 11:33 pm | Updated October 18, 2016 01:16 pm IST - MUMBAI:
The Finance Ministry has approved the unconditional and irrevocable guarantee for Air India’s non-convertible debentures (NCDs) worth Rs.7,400 crore.
The NCDs will have tenure of 19 years and priced at a spread over the applicable Government Securities.
The government has capped the spread at 70 basis points. The NCD proceeds will be used to repay the short-term working capital facility availed itself of by Air India from the 19 banks, the airline said in a statement.
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