Landmark USD 215 Million Term Loan Secures Financing for Air India's Fleet Expansion via GIFT City

Standard Chartered and Bank of India (BoI) have successfully completed a USD 215 million, seven-year amortising term loan for AI Fleet Services IFSC Limited (AIFS), the leasing subsidiary of Air India operating out of Gujarat International Finance Tec-City (GIFT City). This landmark financing is dedicated to funding the acquisition of six Boeing 777-300 ER aircraft, which AIFS will subsequently lease to Air India, supporting the airline’s ambitious fleet expansion under its "***** transformation program. This transaction represents the first-ever commercial aircraft financing structured with a GIFT City borrower, underscoring the emerging role of the financial hub in India's aviation sector. Both institutions served as Mandated Lead Arrangers and Bookrunners (MLAB), with Standard Chartered further taking the critical role of Structuring Bank. BoI participated via its GIFT City branch, affirming its commitment to the development of global financial services within India. The deal validates GIFT City's potential as a vital financing conduit, leveraging its jurisdiction-aligned framework to connect domestic infrastructure ambitions with international capital pools. Air India's CFO and AIFS Chairman, Sanjay Sharma, highlighted that GIFT City will be an "important financing hub" for the airline's expansion strategy, which includes an order for 570 new aircraft. The International Financial Services Centres Authority (IFSCA) noted that this transaction sets a significant precedent for future commercial aircraft financing activities within the GIFT City ecosystem. This financing underscores Standard Chartered’s expertise in transportation finance and its role in delivering pioneering solutions, while signalling a major step in establishing a robust domestic aviation finance landscape in India.