NEW DELHI: In a major boost to
Air India’s divestment,
World Bank’s investment arm
International Finance Corporation
(
IFC
) has said it may participate in the airline’s selloff.
It has been in talks with people close to the transaction and may underwrite the entire debt for the successful bidder. The government has allocated a Rs 33,392-crore debt-cum-working capital loan to the AI-AI Express and AI SATS combine, which is being sold off first as the airline arm of the Maharaja.
When contacted, an IFC spokesperson said while the agency is not participating in AI’s bidding process, it will see who the successful bidder is and then evaluate what role IFC could play. “At present, we are not involved in the Air India disinvestment process. Normally, IFC does not join the fray during the bidding phase,” he said.
“However, we are committed to bridging development gaps in India and financing transport and logistics is one of our top strategic priorities, as it is for the country. Therefore, we are watching the Air India process closely and may get involved at a later stage. Once the winning bidder is chosen, we will evaluate the situation to see if we have a role to play,” the IFC spokesperson added.
Apart from four airlines — Etihad, Lufthansa, British Airways owner IAG and
Singapore Airlines
(SIA) — some financial institutions and sovereign funds are also reported to be in touch with the transaction adviser. Except SIA (which has a JV with Tatas that is tipped to bid for AI), the other three carriers are reportedly in talks with Indian business houses. One of the business houses is led by a promoter currently facing serious financial troubles of his own.
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