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India aviation firm says gets $214 mln loan finance

Tue Aug 12, 2008 8:10am EDT

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NEW DELHI, Aug 12 (Reuters) - India's state-run National Aviation Co (NACIL), which runs Air India [AI.UL], said on Tuesday it had tied up about $214 million through loans to part-finance its purchase of eight Boeing (BA.N) aircraft.

NACIL said in a statement Bank of Scotland and Deutsche Bank (DBKGn.DE) were the lead arrangers of the loan, while ING Bank and Natixis Transport Finance acted as co-arrangers for the pre-delivery finance of three Boeing 777-200 and five 777-300.

European and U.S. export-import banks fund a large portion of aircraft purchases and carriers arrange for pre-delivery payments alone. Indian carriers have taken to selling aircraft on delivery to leasing firms and leasing them back to save on interest payouts.

NACIL said over the past two years it had raised more than $3 billion in long-term loans or bridge finance from international banks and financial institutions to finance its aircraft.

It said it had so far taken delivery of 38 aircraft from 111 ordered from Airbus (EAD.PA) and Boeing. (Reporting by Devidutta Tripathy; Editing by Charlotte Cooper)



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