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Tue 23 Dec 2014 01:29 PM

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Etihad-backed Jet Airways secures $150m loan

India's second largest airline concludes loan facility with financial institutions from the UAE, Bahrain and Doha

Etihad-backed Jet Airways secures $150m loan
Indias Jet airways chairman Naresh Goyal speaks with James Hogan, chief executive officer of Etihad Airways. (AFP/Getty Images)

Etihad-backed Jet Airways, India's second largest airline by passengers carried, has concluded a five-year syndicated loan facility of $150 million.

Financial institutions from Dubai, Abu Dhabi, Bahrain and Doha took part in extending the facility, which was fully subscribed, the airline said in a statement.

The participating banks included Abu Dhabi Commercial Bank and Commercial Bank International, which acted as the mandated lead arrangers, Ahli United Bank and Arab Banking Corporation as the lead arrangers.

Mashreqbank was the sole initial mandated lead arranger and book runner, Jet Airways said.

Last year, Abu Dhabi-based Etihad Airways and Jet Airways announced a long-term strategic alliance, with Etihad taking a 24 percent equity stake in Jet Airways.

The syndicated loan facility will be instrumental in underpinning the airline on its progressive path, Jet Airways chief executive Cramer Ball said, adding: "We will continue to build on the strong foundation as part of our three-year turnaround plan."

In July, Jet Airways and Etihad Airways announced a major new turnaround strategy to return the Indian airline to profitability in three years.

The three-year plan includes a series of critical measures, such as long-term network, fleet and product developments to optimise the airline’s domestic and international operations.

The plan will see new services to markets such as Europe, China, Australia and Southeast Asia, expanded frequencies to existing routes and additional codeshares.

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