Air India Raises $215 Million from Bank of India and Standard Chartered for Refinancing

Air India has raised about $215 million from Bank of India and Standard Chartered Plc for refinancing, according to sources.

The six-year loan was arranged through Gujarat International Finance-Tec City (GIFT City) and is priced at around 168 basis points over the secured overnight financing rate, the sources said. They requested anonymity because the information is not yet public.

The funds will be used to refinance short-term debt that Air India took to buy six Boeing 777-300ER aircraft. In July, Bloomberg News reported that Air India was seeking a bank loan of about $200 million.

Refinancing means taking a new loan to replace an old one, usually to get better terms. It is often done to lower the interest rate, reduce monthly payments by extending the repayment period, or to change lenders. Companies and individuals also use refinancing to manage their debt more efficiently or raise additional funds.

The loan comes after an Air India plane crash in June, which was one of the worst aviation accidents in India. Initially, the accident slowed discussions about fundraising.

An Air India Flight 171 was going from Ahmedabad Airport in India to London Gatwick Airport in the United Kingdom but crashed 32 seconds after takeoff at 13:39 IST on 12 June 2025. All 12 crew members and 229 of the 230 passengers aboard died. On the ground, 19 people were killed and 67 others were seriously injured.

No Official statement has been released yet from Air India, Bank of India, and Standard Chartered.

This deal marks the first time Bank of India acted as a mandated lead manager in a loan arranged through GIFT City, the sources said.