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Dentons, a global law firm, has advised Axis Bank, one of India’s leading private sector banks, on the country’s first aircraft financing transaction under the Gujarat International Finance Tec-City (GIFT) framework. The GIFT City framework is a Special Economic Zone (SEZ) located in Gujarat, India, which offers various benefits such as easier registration, tax incentives, and relaxed regulations to induce foreign investment.
Under this framework, Axis Bank has provided a loan of approximately INR 430 crores (approximately USD 58 million) to Air India, the state-owned airline, to finance the acquisition of a new aircraft. This transaction marks a significant milestone in India’s aviation industry, as it is the first instance where an Indian bank has provided financing to an Indian airline under the GIFT City framework.
The GIFT City framework was established to promote international trade and investment in the region by providing a favorable business environment. The framework allows foreign companies to operate in India with greater ease, including in sectors such as finance, aviation, and logistics.
Dentons’ lawyers worked closely with Axis Bank to navigate the complex regulatory landscape and successfully closed the transaction, which involved obtaining necessary regulatory approvals from various authorities, including the Reserve Bank of India and the Securities and Exchange Board of India. The team advised on the structuring of the transaction, including the documentation and due diligence process, and ensured compliance with applicable laws and regulations.
This deal is a significant achievement for Dentons, which has a strong presence in India and Asia, and further solidifies the firm’s reputation as a leading advisor in the Indian financial sector. The success of this transaction demonstrates Dentons’ deep understanding of the complex regulatory environment in India and its ability to deliver complex deals under challenging conditions.
In a statement, Ashish Jha, Intellectual Property and Technology Practice Head for Dentons India, said, “We are thrilled to have advised Axis Bank on this significant transaction, which marks a new milestone in India’s aircraft financing landscape. Our team’s expertise in aviation finance and experience in navigating India’s regulatory landscape enabled us to deliver a successful outcome for our client.”