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Tue 15 Sep 2015 01:38 PM

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Etihad, equity partners raise $500m on international markets

Airlines will largely use funds raised by the transaction for capital expenditure and investment in fleet

Etihad, equity partners raise $500m on international markets

Etihad Airways, its airport services business and five of its equity partners have completed a new platform financing transaction, raising $500 million on the international markets.

Etihad Airways, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles, Alitalia and Jet Airways have taken part in the fundraising initiative.  

The fundraising follows a series of roadshow meetings, held in Abu Dhabi, Dubai and London.

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 funds raised by the transaction will be used largely for capital expenditure and investment in fleet, as well as for refinancing, depending on each individual airline’s needs.  

James Hogan, president and CEO of Etihad Airways, said: “The success of this transaction is a major endorsement of the shared vision and strategies of these businesses by the global financial community.

“A key element of our equity partner strategy is creating a total which is greater than the sum of its parts, a grouping which can work together to improve revenues, reduce costs and uncover exciting new business synergies.

“We have already been able to identify significant opportunities together, whether that be in shared IT platforms, joint fleet procurement or shared training costs.  Commercial fund-raising is no different.

“Our proposed transaction is simply the next logical step in our growing partnership and underpins its strategic importance.”

To date, Etihad Airways has already raised in excess of $11 billion from more than 80 financial institutions, to help fund its expansion strategy.

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