SMBC provides $120 million loan to Air India for A350-900 aircraft purchase
Sumitomo Mitsui Banking Corporation (SMBC), Japan's second largest bank by assets, has closed a $120 million aircraft financing loan to Air India to help it purchase of an A350-900 aircraft delivered by Airbus.
SMBC was the sole bank in the transaction and the transaction was orchestrated with the assistance of Air India’s wholly owned subsidiary in Gujarat International Finance Tec-City (GIFT City), AI Fleet Services Ltd, the bank said.
SMBC Singapore branch was involved in the transaction.
The aircraft purchase was part of Air India’s order of 470 aircrafts placed earlier this year.
«Through an innovative GIFT City structure, we have successfully completed this aircraft secured debt facility amid a fast-growing Indian market, marking the bank’s first aircraft finance lease transaction of its kind,» said Hiroyuki Mesaki, country head, SMBC India.
Nipun Aggarwal, chief commercial officer at Air India said the A350-900 aircraft is among the first deliveries of the Tata Group's large aircraft order.
«This transaction is also a major step in expanding our aircraft financing business through GIFT City, India’s first International Financial Services Centre (IFSC),» he said.
