AHMEDABAD– Air India’s (AI) leasing arm, AI Fleet Services IFSC (AIFS), has secured a $215 million seven-year amortizing term loan from Standard Chartered Bank (StanC) and Bank of India (BoI).
The loan will be used to finance six Boeing 777-300ER aircraft that will be leased to Air India (AI) as part of its ongoing fleet expansion and renewal program.
Air India Secures $213 Million Loan
Standard Chartered acted as the structuring bank for the transaction, while both banks jointly underwrote the deal as Mandated Lead Arrangers and Bookrunners.
The arrangement demonstrates growing confidence among global lenders in India’s ability to facilitate large-scale aviation financing domestically.
According to P.D. Singh, CEO of Standard Chartered Bank, India and South Asia, the term loan facility to AIFS will “provide a fillip to growing the aviation finance segment in India.”
Singh added in a statement in Business Standard that the first-ever commercial aviation financing at GIFT City “reinforces its position as an aviation finance hub of global repute.”
The financing marks a major milestone for India’s aviation ecosystem. It is the first-ever commercial aircraft financing transaction structured with a borrower based in Gujarat International Finance Tec-City (GIFT City).
The deal highlights the growing potential of India’s aviation finance sector and GIFT City’s emergence as a global aviation finance hub.
AIFS Supports Air India’s Fleet Renewal
The Tata Group-owned airline is in the midst of a five-year transformation journey, which includes a massive order for 570 new aircraft from Airbus and Boeing.
The establishment of AIFS in GIFT City is a key part of Air India’s strategy to optimize its fleet financing and leasing operations.
Sanjay Sharma, Chairman of AIFS and Chief Financial Officer of Air India, said that GIFT City will play an important role in financing the carrier’s growing fleet.
He noted that the AIFS transaction marks an important step in building India’s aviation finance capabilities, supporting Air India’s ambition to become a world-class global airline.
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Strengthening India’s Aviation Finance Hub
The transaction underscores the growing relevance of GIFT City in Gujarat as a preferred destination for structured aviation finance.
With favorable regulations and a developing ecosystem for aircraft leasing and financing, the city is positioning itself as an alternative to established hubs like Dublin and Singapore.
By closing this deal, Air India and its partners have set a precedent for future aviation finance transactions within India.
The collaboration between Indian and international lenders like StanC could attract more global investors and lessors to GIFT City, ultimately boosting India’s standing in global aviation finance.
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Bottom Line
Air India’s $215 million term loan through its GIFT City-based subsidiary, AIFS, is a landmark development in India’s aviation finance sector.
The deal with Standard Chartered and Bank of India not only supports Air India’s ambitious fleet renewal plans but also strengthens GIFT City’s position as a rising global aviation finance hub.
This transaction sets the stage for more such collaborations as India’s aviation market continues to expand.
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