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Etihad Airways raises additional $200 million
Etihad Airways on Friday said it along with its airport services business and five equity partners including India`s Jet Airways raised an additional USD 200 million following an unprecedented increased demand from financial institutions in a range of markets.
New Delhi: Etihad Airways on Friday said it along with its airport services business and five equity partners including India's Jet Airways raised an additional USD 200 million following an unprecedented increased demand from financial institutions in a range of markets.
On September 16, the Gulf carrier had announced raising of funds to the tune of USD 500 million in association with its airport business and partner airlines from the international market for capital expenditure and fleet expansion, among others.
The Abu Dhabi-headquartered Etihad is investment partner in airberlin, Alitalia, Jet Airways, Air Serbia and Air Seychelles.
After unprecedented increased demand from financial institutions in a range of markets, the airlines re-opened the transaction and have raised an additional USD 200 million, bringing the total funds raised to USD 700 million, Etihad said in a release.
The funds would be divided across the seven businesses and used for a mixture of capital expenditure and investment in fleet, as well as for refinancing, depending on each airline's individual needs, it said.
Allocation of the funds raised will be nearly 20 percent each to Etihad Airways, Etihad Airport Services, airberlin and Alitalia, 16 percent to Jet Airways and the remainder to Air Serbia and Air Seychelles, the release said.
Etihad holds 24 per stake in Jet Airways, which it had bought in the carrier after Indian government allowed overseas carriers to invest up to 49 percent in domestic airlines in 2012.
"The initial success of this transaction was a clear endorsement of the shared vision and strategies of these businesses.
Together, we are creating compelling network and product offers for our customers," Etihad Airways President and chief executive James Higan said.
"The additional demand we have seen over the past 24 hours has been enough for us to re-open the transaction. These additional funds will allow this group of airlines to accelerate further the realisation of this vision and these strategies," he said.