Jet Airways raises $150 mn foreign loan

Debt raised from banks in Dubai, Abu Dhabi, Bahrain and Doha with Mashreqbank psc as book runner for transaction

Jet Airways has raised $150 million (over Rs 900 crore) five-year loan from banks in Gulf region to refinance its high cost debt, the airline announced today.

The debt was raised from banks in Dubai, Abu Dhabi, Bahrain and Doha and Mashreqbank psc, was the sole initial mandated lead arranger and book runner for the transaction.

Etihad Airways which owns 24% in the airline had assured Jet to help raise loan from its network of banks.

Jet Airways  has a total debt of around Rs 9,800 crore This includes about Rs 6,000 crore of aircraft-related loans, term loans and working capital. It pays nearly Rs 1,000 crore in interest each year.
 

John Iossifidis, Head of the International Banking Group at Mashreqbank, said: “The successful closure of this transaction is clear evidence of the growing liquidity available from the Middle East, favouring large leading Indian corporates.”