National carrier Air India will hit the market with its long-awaited Rs 7,400-crore bond issue very soon, two sources familiar with the development revealed.

The sources said that the debt-ridden carrier would get finance ministry's nod for the fund-raising exercise within a fortnight.

Air India is banking heavily on the planned bond sale as it is currently reeling under a massive debt of more than Rs 43,000 crore. It wants to raise money via the bond sale to ease the interest cost on the massively expensive working capital loans.

Rohit Nandan, chairman & managing director of Air India, is also optimistic that the fund-raising exercise would get the finance ministry's nod soon.

Speaking on the topic, Nandan said, "As we understand the finance ministry is likely to come around on the issue as the Cabinet has already cleared it."

To implement the planned bond sale as soon as possible has become more important for the national carrier as some of the loan recoveries have started from 1st of October. These loan recoveries were minimal earlier because the carrier was under the FRP (financial restructuring plan).

Civil Aviation Minister Ajit Singh recently said that unconditional guarantees had to come by because the government was undivided on the carrier's financial restructuring, and that unconditional guarantee for bond issue was a significant part of the plan.

In the coming months, Air India will have to pay Rs 100 crore per month as interest cost.