Air India gets approval for more foreign flights ahead of the company's sale
The 10-year tenure bonds of AIAHL worth Rs 1,000 crore with a "green shoe" option of Rs 6,000 crore was fully subscribed at the rate of 7.39 per cent.
The official said that the company received bids worth Rs 21,736 crore and has decided to accept the entire issue of Rs 7,000 crore.
The special purpose vehicle of Air India for transferring part of its debt and assets, had earlier raised another tranche of Rs 7,000 crore through a bonds issue.
The bond issues will help disinvestment-bound Air India pare away some of its debt.
In an earlier decision, the government had decided to transfer debt of Rs 29,464 crore, along with other non-core assets, to the newly-created AIAHL to attract bidder interest for the carrier.
Air India has a total debt of about Rs 60,000 crore and nearly half of it is to be repaid by the proceeds from issue of bonds by AIAHL.