Jet Airways gets Rs 700-crore fresh funds from Etihad

NEW DELHI: Jet Airways has received nearly Rs 700 crore fresh investment from a special purpose vehicle created by its strategic partner Etihad and the funds are likely to be utilised for refinancing debt.

Abu Dhabi-based Etihad Airways currently holds 24% stake in the domestic carrier. Jet Airways on Thursday said it has issued Rs 700 crore worth non-convertible debentures on private placement basis.

Sources said EA Partners IBV, which is a special purpose vehicle formed by Etihad Airways with its equity partners, has subscribed to the nonconvertible debentures.

The funds are likely to be used by Jet Airways to refinance existing debt. The group had an overall debt of Rs 11,072 crore or about $1.74 billion at the end of June.

EA Partners IBV has been floated by Etihad Airways along with its airport services business — Etihad Airport Services — and five of its equity partners. The five entities are Jet Airways, airberlin, Air Serbia, Air Seychelles and Alitalia.

According to a regulatory filing, allotment of 6,989 redeemable non-convertible debentures on private placement basis was approved by Jet Airways' committee of directors at its meeting on Wednesday.

The committee has allotted "6,989 rated, listed, taxable, unsecured, redeemable nonconvertible debentures (NCDs) of Rs 10,00,000 each for cash at par aggregatingRs 698.9 crore on private placement basis," the filing said. Earlier this month, EA Partners IBV raised $700 million. Etihad had said in a release the funds would be divided across the seven businesses and used for a mixture of capital expenditure and investment in fleet, as well as for refinancing, depending on each airline's individual needs.