Life Insurance Corporation has sanctioned Rs 400 crore (Rs 4 billion) loan to Jet Airways for fleet acquisition, Minister of State for Finance S S Palanimanickam said on Tuesday.
"LIC has informed that it has sanctioned Rs 400 crore for the Pass Through Certificate issued by the Special Purpose Vehilce having UTI Bank as Trustee to facilitate acquiring of new fleet by Jet Aiways," he said in a written reply to a question in Rajya Sabha.
Out of the above amount, Rs 305.12 crore (Rs 3.05 billion) has been drawn by the SPV.
The subscription carries an interest rate of 11.7 per cent per annum redeemable in 48 quarterly instalments starting 3 months from the date of allotment of respective PTC.
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