Air India is in quest of a ‘Bridge Loan’ of up to $500 Mn to take delivery of 4 Boeing 787 Dreamliner aircrafts between May and November 2014 from an on-going order. For this, Air India has invited offers from banks to arrange the bridge financing for a period of 6-12 months. Air India is offering the aircraft as security and will pay back the loan following its conclusion of a sale and lease-back arrangement.
What is a “Bridge Loan”?
Bridge Loan (also called Bridge Finance, Bridging Loan, or Gap Financing) is a short-term (usually less than a year) loan taken to cover the period between the expiry of one loan and the beginning of another loan. Bridge loan is arranged mostly to accomplished a purchase (viz. a new house, aircrafts) before the borrower gets payment from a sale (of the old house, old aircraft), or before a long-term loan is made accessible upon completion of its requirements.
Bridge loans are normally more costly than normal financing, to pay off for the extra risk. The lender also may demand cross-collateralization and a lower loan-to-value ratio. On the other hand Bridge Loans are generally arranged rapidly with comparatively little documentation.
RBI has liberalized hedging limit for domestic investors to $250,000 from $100,000 on the basis of a simple declaration without any prerequisite of further documentation.
RBI has now allowed all resident individuals, firms and companies, who have actual or anticipated foreign exchange exposures to book foreign exchange forward contracts up to $250,000 on the grounds of a mere declaration without any prerequisite of further documentation.
The RBI stated that the services being currently provided for SMEs (Small and Medium Enterprises) which are having an exposure to foreign exchange risk, shall remain unchanged.
President Pranab Mukherjee cleared the nomination of Justice G Rohini (59), the most senior judge of the Andhra Pradesh high court, as the Chief Justice of the Delhi High Court. Prior to Justice Rohini’s appointment, the Delhi high court had a strength of 40, out of which 9 were women. She will be the 10th woman judge at the Delhi high court.
In February 2014, Collegium of Supreme Court of India, headed by Chief Justice of India P. Sathasivam nominated Justice Rohini as the Chief Justice of Delhi High Court. She will charge as the first woman chief justice of Delhi High Court, 47 years after the court was established in October 1966.
Justice G. Rohini is expected to stay for a period of 4 years if not elevated to the Supreme Court. At present, out of 29 judges in the Supreme Court, only 2 are women.