Etihad and partners raise $500m

Etihad and partners raise $500m

A total of $500 million has been raised by Etihad Airways and partner businesses on the international markets.

The UAE carrier, Etihad Airport Services, Air Berlin, Air Serbia, Air Seychelles, Alitalia and Jet Airways have all joined in the fundraising initiative.

Etihad Airways, Etihad Airport Services, Air Berlin and Alitalia will each receive 20%, Jet Airways 16% and the remainder will go to Air Serbia and Air Seychelles.

The funds 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.

The shared vision and strategies of the airlines were laid out to financial institutions at a series of roadshow meetings in Abu Dhabi, Dubai and London.

These highlighted the growing network coordination and revenue development initiatives, coupled with joint procurement and business synergy projects, across the airlines.

Etihad Airways has already raised more than $11 billion from more than 80 financial institutions to help fund its expansion.

Etihad president and chief executive, James Hogan, said: “The success of this transaction is a major endorsement of the shared vision and strategies of these businesses by the global financial community.

“A 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.

“We have already been able to identify significant opportunities together, whether that be in shared IT platforms, joint fleet procurement or shared training costs. Commercial fundraising is no different.

“Our proposed transaction is simply the next logical step in our growing partnership and underpins its strategic importance.”


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