Etihad Airways (Abu Dhabi), its airport services business and five of its equity partners have successfully completed an innovative new platform financing transaction, raising $500 million on the international markets.
According to the group, “Etihad Airways, Etihad Airport Services, Airberlin, Air Serbia, Air Seychelles, Alitalia and Jet Airways have together taken a new step forward in their strategic business development through this unique fund-raising initiative.”
The group continued:
“At a series of roadshow meetings, held in Abu Dhabi, Dubai and London, the shared vision and strategies of the airlines were laid out to financial institutions. These highlighted the growing network coordination and revenue development initiatives, coupled with joint procurement and business synergy projects, across the airlines.”
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.
The transaction marks the first time that Etihad Airways and its partners have raised funds together. To date, Etihad Airways has already raised in excess of $11 billion (US) from more than 80 financial institutions, to help fund its expansion strategy.
The funds have been raised through a special purpose vehicle, EA Partners IBV. Goldman Sachs International, ADS Securities and Anoa Capital are acting as joint lead book-running managers for the offering.
Copyright Photo: SPA/AirlinersGallery.com. Etihad Airways’ Airbus A380-861 A6-APA (msn 166) departs from London (Heathrow).
Etihad Airways aircraft slide show: