Etihad Airways, its airport services business and five of its equity partners have today successfully completed an innovative new platform financing transaction, raising $500 million on the international markets.
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
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.
Hogan, President and Chief Executive Officer of Etihad Airways, said: “The
success of this transaction is a major endorsement of the shared vision and
strategies of these businesses by the global financial community.
key element of our equity partner strategy is creating a total which is greater
than the sum of its parts, a grouping which can work together to improve
revenues, reduce costs and uncover exciting new business synergies.
have already been able to identify significant opportunities together, whether
that be in shared IT platforms, joint fleet procurement or shared training
costs. Commercial fund-raising is no different.
proposed transaction is simply the next logical step in our growing partnership
and underpins its strategic importance.”
of the funds raised will be nearly 20 per cent each to Etihad Airways, Etihad
Airport Services, airberlin and Alitalia; 16 per cent to Jet Airways; and the
remainder to Air Serbia and Air Seychelles.
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.
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 US$11 billion from more than 80 financial institutions, to help fund its
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.