Etihad Airways Partners, a funding vehicle for Etihad Airways and airlines in which it has equity stakes, has successfully completed a new platform financing transaction, raising $500 million on the international markets.
 
Etihad 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 initiative.  
 
At 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.  
 
James 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.
 
“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 fund-raising is no different.”

“Our proposed transaction is simply the next logical step in our growing partnership and underpins its strategic importance,” he said.
 
Allocation 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.
 
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 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 $11 billion from more than 80 financial institutions, to help fund its expansion strategy.
 
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. – TradeArabia News Service