LIC, EPFO buy Rs 7K cr Air India bonds

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SummaryLIC and EPFO have agreed to fully subscribe to the bond sale of national carrier Air India.

issue is a part of the government's restructuring plan for reviving the airline. The Cabinet Committee on Economic Affairs had on April 12 approved a financial restructuring plan for the airline, which included the issuance of the NCDs.

The bonds will be issued in three tranches -- Series I of Rs 3,000 crore, Series II of Rs 1,000 crore, and Series III of Rs 5 crore, according to India Rating.

In all three tranches the issuer has the option to retain additional subscription such that the total amount mobilised does not exceed Rs 7,400 crore, the agency added.

The airline has to turn cash-positive by next fiscal and net profit by 2020, and SBI Caps is working on the revival plan for the airline.

Last week, the airline failed to sell four Boeing 777s as it did not find any takers.

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