Aviation cos raise $2 bn to buy aircraft

Aviation companies, including the state-owned National Aviation Company of India (NACIL) and private airliner Jet Airways, have raised more than $2 billion of overseas debt in October to buy aircraft.

The NACIL raised $1 billion through External Commercial Borrowings(ECBs) to get aircraft on lease and hire-purchase basis, according to a data released by the Reserve Bank on Wednesday. The debt raised by NACIL under the approval route will have to be repaid over a period of 13 years and three months.

Another public sector company Air India Charters raised $430 million of overseas debt to buy aircraft. Jet Airways raised two ECB loans of $477 million and $82 million in October for lease and hire-purchase of aircraft.

Other important companies which raised ECBs under the approval route during the month include Jindal Stainless ($200 million) and Exim Bank ($250 million).

As regards the automatic route, Tata Teleservices raised $400 million in October with a repayment period of six years and nine months to import capital goods.

Meanwhile, among the communication companies, Idea cellular raised $100 million to import capital goods.

Other large corporates which have raised ECBs under automatic route during the month were Suzlon Energy ($200 million), Hyundai Motors ($150 million) and XL Telecom and Energy ($40 million).