Etihad previously said that it had raised more than $11 billion in long-term funding from the global financial markets since 2003. Courtesy Etihad Airways
Etihad previously said that it had raised more than $11 billion in long-term funding from the global financial markets since 2003. Courtesy Etihad Airways

Business

Etihad and partners raise $500 million for capital expenditure

The fund raising by Etihad Airways Partners, which includes airlines such as Alitalia, airberlin, Air Serbia and Air Seychelles, follows an initial $700 million debt issue in September.

Shereen El Gazzar

May 25, 2016

Etihad Airways and its partner airlines have collectively raised US$500 million which will be used for capital expenditure, buying new planes and refinancing debt, the airline said on Wednesday.

The bond was issued by Etihad Airways Partners, which includes Etihad Airport Services, airberlin, Air Serbia, Air Seychelles and Alitalia. It follows last year’s successful fundraising of $700m.

The five-year bond, raised by the special purpose vehicle EA Partners II, has a yield of 6.75 per cent, Reuters news agency reported.

“This transaction shows the strength of that grouping, as well as the strength of the individual members,” said James Hogan, president and chief executive of Etihad Aviation Group. Bookrunners for the bond were ADS Securities, Anoa Capital, Goldman Sachs International and Integrated Capital.

Last year, the credit rating agency Fitch gave Etihad its first A rating, reflecting its “extensive network, strong market position, favourable geographic hub location poised for growth and cost advantage”. Etihad previously said that it had raised more than $11 billion in long-term funding from the global financial markets since 2003, including $3.7bn in 2014 to finance its debt.

The airline has invested in minority stakes in airlines across Europe, India and Australia. Those investments attract passenger traffic through its Abu Dhabi airport hub, as it connects travellers from east to west.

selgazzar@thenational.ae

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