Etihad Airways completes financing transaction | Fin24
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Etihad Airways completes financing transaction

Sep 16 2015 18:50

Johannesburg - Etihad Airways, its airport services business and five of its equity partners have on Wednesday successfully completed a new platform financing transaction, raising $500m 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.  
“The success of this transaction is a major endorsement of the shared vision and strategies of these businesses by the global financial community," said James Hogan, president and chief executive officer of Etihad Airways.
“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."
Hogan said significant opportunities have already been identified together, whether that be in shared IT platforms, joint fleet procurement or shared training costs.

“Our proposed transaction is simply the next logical step in our growing partnership and underpins its strategic importance,” he said.
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 $11bn 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. 

etihad airways  |  aviation  |  industrial  |  airlines


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