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| Kingfisher gets Rs 2,000 cr funding from banks |
| Press Trust of India / New Delhi Jun 04, 2009, 16:52 IST |
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 Vijay Mallya-promoted Kingfisher Airlines has got crucial funding of Rs 2,000 crore from State Bank of India and a consortium of other banks to meet working capital requirements.
While Rs 950 crore has been given by State Bank of India, the rest of the amount has been arranged from Bank of India, Bank of Baroda and Punjab National Bank, according to sources.
When contacted, the company spokesperson said: "Fund raising is an ongoing process and because we are bound by confidentiality/non disclosure agreements, it will be inappropriate to comment at this stage".
Earlier this year, the airline's parent company United Breweries Holdings had sought shareholders' approval to authorise the board to provide corporate guarantee worth up to Rs 12,000 crore to lenders of UBH's subsidiary Kingfisher Airlines (KFA), by pledging shares and mortgaging its movable and immovable properties.
Kingfisher has also been targeting an equity infusion of around Rs 2,000 crore through strategic and financial investors.
The equity investment will be used to de-leverage the balance sheet, the company told investors in January.
The large part of the funding, raised from SBI and other banks, could go towards clearing of fuel bills of the airline and other airport related charges.
The Indian aviation industry has been struggling with the availability of credit as banks have been reluctant to lend to airlines on account for falling passenger traffic and losses suffered by them in the recent past.
Kingfisher operates services to 69 cities currently with a fleet of 75 aircraft with around 400 flights a day. It covers all segments off air travel from low fares to premium service.
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