Etihad, partners raise $500m in innovative new structure

Airways, its airport services business and five of its equity partners have today completed a financing transaction, raising $500 million (Dh1.83 billion) 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: “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.”

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.

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