Funds raised from a new financing transaction by Etihad Airways and its equity partner airlines has exceeded the original $500 million to hit $700 million.
This followed a surge in demand from international financial institutions, according to the UAE carrier.
Etihad Airways, Etihad Airport Services, Air Berlin, Air Serbia, Air Seychelles, Aliltalia and Jet Airways announced on Tuesday they had raised $500 million through the transaction, which followed roadshows in Abu Dhabi, Dubai and London.
After “unprecedented” increased demand from financial institutions in a range of markets, the airlines reopened the transaction and have raised an additional $200 million.
The funds, which will be split across the seven businesses, will be used for a mixture of capital expenditure and investment in fleet, as well as for refinancing, depending on each airline’s individual needs.
Allocation of the funds raised will be nearly 20% each to Etihad Airways, Etihad Airport Services, Air Berlin and Alitalia; 16% to Jet Airways; and the remainder to Air Serbia and Air Seychelles.
Etihad Airways president and chief executive, James Hogan, said: “The initial success of this transaction was a clear endorsement of the shared vision and strategies of these businesses.
“Together, we are creating compelling network and product offers for our customers, while cutting costs and sharing a wide range of synergies.
“The additional demand we have seen over the past 24 hours has been enough for us to reopen the transaction.
“These additional funds will allow this group of airlines to accelerate further the realisation of this vision and these strategies.
“Individually, each of these partners is building an increasingly strong business. But together, that strength is multiplied. This transaction recognises and endorses that strength.”
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