Mumbai: Jet Airways Ltd has borrowed $300 million to meet its immediate cash needs, but a planned $400 million rights issue and private placement of shares were on track, a senior company official said on 6 March.
Jet, which last year put a rights issue on hold because of the global credit crunch, had said in January it expected to complete the issue in a few months and raise a further $400 million from private placement with institutions.
“Everything is on track, there are no further delays,” said K.G. Vishwanath, senior general manager of investor relations, denying a report in a newspaper that it had put off the share issue and the placement by three or four months.
“We will try and complete the rights issue by end-June as planned. We don’t see any problems,” he said. “But because the issue had been delayed, we decided to borrow the money we needed to pay against aircraft deliveries.”
Jet is spending about $2 billion on wide-body aircraft that it will use for its growing international business. Of the 20 planes on order, 16 have been delivered and the remainder will be delivered by end-October, Vishwanath said.
Jet Air borrowed 15% of the $2 billion abroad. The institutional placement will be done after the rights issue closed.
The company had said it needed the money for its fleet expansion and for overhauling Air Sahara, which it bought last April and has since renamed JetLite.