Mumbai, Dec. 27 (PTI): Air-India today floated two tenders inviting bids from banks to raise $429 million as loans towards advance payment for 22 of the 68 aircraft it proposes to buy from Boeing.

“We have invited tenders and January 6, 2006 is the last date for submitting bids. By the end of January, we will finalise the bank from where we will take the loan,” A-I general manager S. Venkat said.

One tender is for raising $306 million for A-I, while another seeks to raise $123 million for its low-cost subsidiary, Air-India Express.

“We have to make an advance payment for the first 22 aircraft, which will be delivered between 2006 and 2008. This includes 12 Boeing 737-800s for A-I Express and five Boeing 777-200LR and 11 B777-300ERs for A-I,” he said.

The loans will have a six-month tenor, which may be raised in national or foreign currency or a mix of both, he added.

This loan would meet about 15 per cent of the total cost of the fleet acquisition, while the remaining would be on the bank guarantee from the Exim Bank, Venkat said.