Chase Manhattan Corp. has completed the first tranche of a $305 million financing for two Boeing 747-400s for Air India - the first time such financing has been raised without a guarantee from the government of India.
Chase served as both adviser and arranger on the deal, which consists of approximately $258 million in financing backed by a guarantee from the U.S. Export-Import Bank and a $47 million commercial bank facility.
The Ex-Im Bank portion of the financing was syndicated by Chase Securities in New York; the commercial bank portion was syndicated through Chase Manhattan Asia Ltd. in Hong Kong. Both syndications were oversubscribed.
The aircraft will be used by Air India primarily for its new Chicago- Frankfurt-Bombay route.