Jet Airways (India), on Monday, concluded a $150-million (about Rs.945 crore) five-year syndicated loan facility, which was fully subscribed by banks spread across the Middle East region.
“Jet Airways is renowned for introducing quality to India’s airline industry, and it is time to re-energise and re-establish ourselves as the country’s leading full-service airline. We will continue to build on this strong foundation as part of our three-year turnaround plan. This syndicated loan facility will be instrumental in underpinning the airline on this progressive path” Jet Airways CEO Cramer Ball stated.
Mashreqbank was the sole initial mandated lead arranger and book runner for the transaction.
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“The successful closure of this transaction is clear evidence of the growing liquidity available from the Middle East, favouring large leading Indian corporate,” John Iossifidis, Head of the International Banking Group at Mashreqbank said.
“India has always been an essential strategic market for Mashreqbank and we remain committed to working alongside our core relationship clients, to explore different forms of capital funding,” he added.
Last year, Abu Dhabi based Etihad Airways had picked up 24 per cent stake in Jet Airways, and had stated that it would help Jet Airways mobilise funds through bank loans to improve finances.
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Jet Airways stock closed with a loss of 3 per cent at Rs.387.55 on the Bombay Stock Exchange.