Etihad Airways raises debt worth $500 million

MUMBAI: Etihad Airways Wednesday said its airport services business and five of its equity partner have completed a financing transaction, raising debt worth $500 million on the international markets.

Etihad Airways, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles, Alitalia and Jet Airways have together raised the money for the first time, the airline said in a release. Of the total funds raised, Jet will get 16% Etihad and its airport services, Airberlin and Alitalia will get 20% each while Air Seychelles and Air Serbia will get the rest.

Etihad owns 24% in Jet.

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.

"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 airline said in an investment.

To date, Etihad Airways has already raised in excess of US$11 billion from more than 80 financial institutions, to help fund its expansion strategy.