Results of the recently held road show by the international financial community along with the launch of the transaction has resulted in Etihad Airways, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles and Alitalia raising a further US$500 million.
This will be the second platform financing transaction, following success of last year’s bond which raised US$700 million.
James Hogan, president and chief executive officer of Etihad Aviation Group, said: “With this second successful transaction, the international financial markets have continued to show belief in the Etihad Airways Partners story. Our equity partner strategy is a grouping which can work together to improve revenues, reduce costs and uncover new business synergies.”
The funds raised by the transaction will be again used largely for capital expenditure and investment in fleet, as well as for refinancing, depending on each individual airline’s needs. During series of roadshow meetings in Abu Dhabi and Dubai and global investor calls with London, Asian and European markets, shared vision and strategies of the airlines were laid out to financial institutions. These highlighted growing network coordination and revenue development initiatives, coupled with joint procurement and business synergy projects, across the airlines.