Kingfisher lands Rs 1,000 crore loan from ICICI

Bangalore: Vijay mallya-led Kingfisher Airlines appears to have received an in-principle approval from the country’s largest private sector bank ICICI Bank for a Rs 1,000-crore loan facility towards operational expenses, a top company official said.
The airline and its parent UB Holdings turned to debt, after the current market turmoil forced them to postpone plans to raise fund from equity market.
“We have an in-principle approval from ICICI Bank for Rs 1,000 crore-debt. The company will be drawing Rs 500 crore by the first week of July. We have not yet taken a call on availing of the remaining tranche,” a company official told ET.
ICICI Bank officials declined to comment. A spokesperson said the bank would not comment on transactions with individual corporates.
The development comes even as the aviation sector is bleeding from a dual assault of rising ATF prices and a slowdown in air traffic growth.
The combined losses of the domestic airlines is pegged at over $2 billion annually. It is believed that Kingfisher Airlines, backed by guarantees from the parent, is raising debt through a five-year facility with a limited moratorium period initially.
28/06/08 Boby Kurian/Economic Times

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Categories: Kingfisher Jun 2008