Etihad Airways ups fundraising transaction to $700 million
Etihad Airways and its equity partner airlines have increased the funds raised from their unique platform financing transaction to US$700 million following a surge in demand from international financial institutions.
Etihad Airways, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles, Aliltalia and Jet Airways recently announced they had successfully raised $500 million through the transaction, which followed roadshows in Abu Dhabi, Dubai and London.
Following an unprecedented increase in demand from financial institutions across a range of markets, the airlines re-opened the transaction and have raised an additional $200 million, bringing the total to US$ 700 million.
The funds, which will be split across the seven businesses, will be used for a mixture of capital expenditure and investment in fleet, as well as for refinancing, depending on each airline’s individual needs.
“The initial success of this transaction was a clear endorsement of the shared vision and strategies of these businesses,” said James Hogan, president and CEO of Etihad Airways, which is a strategic partner of leading Dubai-based property developer The First Group.
“Together, we are creating compelling network and product offers for our customers, while cutting costs and sharing a wide range of synergies.
“Individually, each of these partners is building an increasingly strong business. But together, that strength is multiplied. This transaction recognises and endorses that strength.”
Allocation of the funds raised will be nearly 20 percent each to Etihad Airways, Etihad Airport Services, airberlin and Alitalia; 16 per cent to Jet Airways; and the remainder to Air Serbia and Air Seychelles.