India’s Jet seeks to raise $150m via Etihad bankers

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Jet Airways, the Indian airline that last month sold a 24 percent stake to Etihad Airways for $380m, is reportedly seeking to raise $150m in the next two months via the Abu Dhabi carrier’s banking network.

Jet will look to tap the cash at 3 percentage points above the London interbank offer rate (Libor), a senior executive at the operator told the Wall Street Journal. That rate is substantially below the average annual rate of 12 percent that Jet currently pays on its loans.

"Etihad is going to help us out. They will be facilitating the loan through their banking environment," the anonymous executive told the paper.

All of the $150m would be raised in a lump sum with a maturity of three years, they added.

Jet will also seek to raise an additional $150m in overseas funds at a later stage, although this will not be via Etihad, the executive added. Jet, controlled by billionaire Indian Naresh Goyal, is about $800m in debt.

The stake sale to Etihad is the first example of such a deal following the Indian government’s decision to permit overseas carriers to purchase stakes of up to 49 percent in the country’s carriers.

Related:
Topics
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Playing by the numbers: Saudi Arabian Airlines

Playing by the numbers: Saudi Arabian Airlines

Why is Saudia only mentioned as an afterthought when one talks...

Ports of change

Ports of change

Investment in ports in the GCC region is at a record high, as...

Crowded skies in the Middle East

Crowded skies in the Middle East

Aviation experts give their suggestions on how to solve the Middle...

Most Popular
Most Discussed