Air India Secures $215M GIFT City Loan at 168bps Over SOFR to Refinance Six Boeing 777-300ERs

Air India has locked in roughly $215 million in term financing to refinance short-dated borrowings tied to several widebodies, according to people familiar with the matter.

The six-year loan was arranged through Gujarat International Finance-Tec City (GIFT City) and is split between Bank of India and Standard Chartered Plc (LSE: STAN). Lenders priced the deal at about 168 basis points above the secured overnight financing rate.

The proceeds will replace bridge-style debt Air India took on while taking delivery of six Boeing 777-300ERs - the jets themselves built by Boeing (NYSE: BA). The airline's loan hunt for roughly $200 million was reported in July; this transaction appears to be that effort coming to market.

Underwriters and airline finance desks will note a couple of practical effects. First, swapping short-term, possibly higher-cost facilities for a multi‑year package eases an immediate refinancing wall on the balance sheet. Second, the pricing - 168 bps over SOFR - gives a fresh market signal about credit spreads for this borrower in GIFT City structures.

There was a pause in fundraising momentum after a deadly Air India crash in June that shook the domestic industry and prompted heightened scrutiny of the carrier. That event slowed talks for a time, market participants say; this loan suggests lenders ultimately felt comfortable reopening the channel.

For market watchers, the deal is also a reminder of how airline capital needs flow into banks and global financiers. Standard Chartered's involvement will be tracked by analysts keeping tabs on lenders' aviation exposure, and Boeing's delivery schedule for the 777-300ERs remains a line item for anyone modelling aircraft-related capex and financing timing.

No formal announcement has been made by the airline or the banks involved.