BackJet Airways raises $150 million syndicated loan
The airline said that financial institutions in the Middle East, from Dubai, Abu Dhabi, Bahrain and Doha, fully subscribed to the transaction
Premium
Mumbai: Jet Airways India Ltd, the country’s second largest airline by passengers carried, said on Monday that it had concluded a five-year syndicated loan facility of $150 million.
Financial institutions from Dubai, Abu Dhabi, Bahrain and Doha in West Asia took part in extending the facility, which was fully subscribed, the airline said in a statement.
The participating banks include Abu Dhabi Commercial Bank PJSC and Commercial Bank International PJSC, which acted as the mandated lead arrangers, and Ahli United Bank B.S.C., and Arab Banking Corporation B.S.C., the lead arrangers.
Alpen Capital was financial advisor to Jet Airways in the transaction. Mashreqbank PSC was the sole initial mandated lead arranger and book runner, Jet Airways said.
Last year, Abu Dhabi-based Etihad Airways PJSC and Jet Airways announced a long-term strategic alliance, with Etihad taking a 24% equity stake in Jet Airways and a 50.1% stake in Jet Privilege Pvt. Ltd.
Jet Airways currently operates 116 aircraft connecting 71 destinations.
Cramer Ball, chief executive officer at Jet Airways, said the syndicated loan “will be instrumental in underpinning the airline on this progressive path," and contribute to its three-year turnaround plan.
As on 30 September 2014, the overall debt on Jet Airways balance sheet was ₹ 9,700 crore and it had cash and cash equivalent positions at ₹ 1,600 crore, N. Ravichandran, vice-president (finance), told analysts in November.
The airline repaid ₹ 1,005.80 crore during the September quarter, he said.
Shares of Jet Airways dropped 2.99% to close at ₹ 387.55 on Monday on the BSE while the benchmark Sensex gained 1.21% to close at 27,701.79 points.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
