National carrier Air India has tied up with Deutsche Bank and the British lender Investec Bank to raise up to $500 million fund to take the delivery of five Boeing Dreamliners, according to airline sources.
"We have got financing for all the five Dreamliners and have mandated Deutsche Bank and Investec Bank for arranging the bridge loan for this," a senior Air India official said.
The flag carrier had on June 26 invited bids from banks and financial institutions to arrange bridge finance of up to $500 million to pay for five Boeing 787s.
A bridge-loan is typically used to meet payment commitments until a long-term financing is arranged.
Air India is raising this fund for six-12 month period and plans to repay the same after a sale and leaseback of these planes.
The airline has already received the delivery of seven Dreamliners between last September and June this year.
The delivery of these five aircraft will be taken between July and October, the official added.
The deal is part of the 68 aircraft that the carrier had ordered from Boeing in January 2006, which includes 27 Dreamliners, 41 B-777s and B-737-800s. Apart from this, the national carrier had also booked 43 planes from Airbus, which have already been inducted in its fleet.