Etihad Airways and partner airlines fundraising transaction increased to $700 million

ABU DHABI, United Arab Emirates – Etihad Airways and its equity partner airlines have increased the funds raised from their unique platform financing transaction to $700 million following a surge in d

ABU DHABI, United Arab Emirates – Etihad Airways and its equity partner airlines have increased the funds raised from their unique platform financing transaction to $700 million following a surge in demand from international financial institutions.

Etihad Airways, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles, Aliltalia and Jet Airways announced on Tuesday they had successfully raised US$ 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 re-opened the transaction and have raised an additional US$ 200 million, bringing the total to US$ 700 million.

The funds, which will be split across the seven businesses, will be used for a mixture of capital expenditure and investment in fleet, as well as for refinancing, depending on each airlineโ€™s individual needs.

James Hogan, President and Chief Executive Officer of Etihad Airways, said:โ€œThe 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.

โ€œThe additional demand we have seen over the past 24 hours has been enough for us to re-open the transaction. These additional funds will allow this group of airlines to accelerate further the realisation of this vision and these strategies.

โ€œIndividually, each of these partners is building an increasingly strong business. But together, that strength is multiplied. This transaction recognises and endorses that strength.โ€

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.

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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