Jet gains as Etihad, allies raise $700 m

 Etihad Airways — the flag carrier of the Emirate of Abu Dhabi, UAE — and its equity partner airlines on Friday increased funds raised from their unique platform financing transaction to $700 million, following a surge in demand from international financial institutions.

Etihad, whose partners include Etihad Airport Services, airberlin, Air Serbia, Air Seychelles, Aliltalia, and India’s largest full-service private carrier, Jet Airways, together announced on Tuesday to have successfully raised $500 million through the transaction, which followed roadshows in Abu Dhabi, Dubai and London.

“After unprecedented increased demand from financial institutions in a range of markets, the airlines reopened the transaction and have raised an additional $200 million, bringing the total to $700 million,” a statement said.

The funds, which will be split across the seven businesses, will be used for a mixture of capital expenditure and investment in fleet development, 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. Together, we are creating compelling network and product offers for our customers, while cutting costs and sharing a wide range of synergies,” Etihad Airways President and Chief Executive Officer James Hogan said.

 “The additional demand that we’ve seen over the past 24 hours has been enough for us to reopen the transaction,” he added.

 Allocation of the funds raised will be nearly 20 per cent each ($140 million) to Etihad Airways, Etihad Airport Services, airberlin and Alitalia; 16 per cent to Jet Airways ($112 million); and the remainder ($28 million) to Air Serbia and Air Seychelles.