Air India has secured approximately $215 million in funding from Bank of India and Standard Chartered to refinance existing debt. The loan, executed through Gujarat International Finance-Tec City (GIFT City), has a six-year term and is priced at a margin of about 168 basis points above the secured overnight financing rate.

The proceeds from this loan will be used by Air India to refinance shorter-term debt obligations that were initially taken on to finance the acquisition of six Boeing 777-300ER aircraft. Sources familiar with the matter indicated that Air India had been seeking a bank loan of approximately $200 million since July.

This transaction marks the first instance of Bank of India acting as a mandated lead manager in a loan deal originating from GIFT City.

The fundraising process experienced a temporary slowdown following a significant Air India plane crash in June, which was one of the worst aviation accidents in India's history. Air India Flight 171, en route from Ahmedabad to London Gatwick, crashed shortly after takeoff on June 12, 2025. The crash resulted in the deaths of all but one of the 230 passengers and all 12 crew members, as well as 19 fatalities and numerous injuries on the ground.

Neither Air India, Bank of India, nor Standard Chartered have yet released any official statements regarding this transaction.