Jet Airways in talks to raise Rs1,500 crore from SBI, PNB

Mumbai: India’s largest private carrier Jet Airways (India) Ltd is set to raise Rs1,500 crore from two domestic banks—State Bank of India and Punjab National Bank—to meet working capital requirements and fund expansion plans, according to a senior executive of one of the lenders who didn’t want to be identified.
A senior Jet Airways executive, on condition of anonymity, confirmed that the carrier is in talks with these two banks. “We are in talks with several banks to raise money. It is too premature to comment on details of the fund-raising,” he said. He did not want to be identified considering the sensitivity of subject.
The senior banker mentioned earlier said both the banks have in principle agreed to lend to Jet on “appropriate collaterals”.
Jet Airways is also in talks with Abu Dhabi-based Mubadala Development Co., an investment company promoted by the government of the emirate of Abu Dhabi, for a Rs1,000 crore loan.
Rival Kingfisher Airlines Ltd is also looking at tapping overseas lenders in Singapore and Hong Kong.
A senior Kingfisher Airlines executive declined to comment on the issue.
The Mumbai-based carrier recently raised Rs1,000 crore from ICICI Bank Ltd to meet its working capital requirement. A person close to the development, who did not want to be identified, said Kingfisher Airlines has approached ICICI Bank again for another loan. The carrier is in talks with investors to raise $400 million (Rs2,048 crore) by diluting its equity.
Meanwhile, National Aviation Co. of India Ltd, or Nacil, that runs Air India, is also looking at raising $2.5 billion from the banks to fund the acquisition of 23 Boeing planes that will be delivered by 2011. The carrier will initiate the process of raising $2.5 billion from a consortium of banks in December.
23/11/08 P.R. Sanjai/Livemint

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Categories: Jet Airways Nov 2008