Jet Airways has concluded a five-year loan worth US$150 million from the Middle East.
The syndicated loan facility was agreed with Mashreqbank, and subscribed to by banks spread across the Middle East region, including Dubai, Abu Dhabi, Bahrain and Doha.
The airline’s CEO, Cramer Ball, said the loan would allow Jet to “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,” he added.
The move follows the investment by Etihad of a 24% equity stake in Jet, and a 50.1% stake in Jet Privilege, the airline’s loyalty programme.
“The successful closure of this transaction is clear evidence of the growing liquidity available from the Middle East, favouring large leading Indian corporates,” stated John Iossifidis, head of the international banking group at Mashreqbank.
“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.”