SpiceJet to raise $80 mn for fleet expansion

New Delhi: Low-cost carrier SpiceJet has chalked out plans to raise up to $60-80 million through a mix of equity dilution and debt. This will part finance 10 new aircraft worth around $450 million, the deliveries of which will start in 2009.
SpiceJet recently applied to the US Exim Bank for a $330-350-million loan. If the loan comes through, it will take care of around 80-85% of the fund requirement. For the remaining amount, the company may dilute 10-12% equity to raise around $50 million and resort to debt of $30 million.
However, if the loan from US EXIM Bank does not materialise, the airline may go for sale-lease-buyback to fund its fleet expansion plans.
On this, the company will take a call by October, said a senior company executive.
“We will require between $60-80 million to fund our fleet expansion plans,” SpiceJet CEO Siddhanta Sharma told ET.
09/08/07 Sudipto Dey/Economic Times

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Categories: SpiceJet Aug 2007