Mubadala-Jet mull Rs1,000 cr loan deal

Mumbai /New Delhi: Jet Airways (India) Ltd is 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 to help fund working capital needs and expansion plans.
The carrier and Mubadala are in the process of finalizing the deal, a senior Jet Airways executive said on condition of anonymity.
Jet executive director Saroj Kumar Datta and chief executive Wolfgang Prock-Schauer didn’t respond to messages. “We checked, it’s a market rumour,” a spokesman for Mubadala, who asked not to be named, said on phone from Abu Dhabi, declining to comment further.
Jet is promoted by Naresh Goyal and is India’s largest private carrier.
India’s airlines are all scouting for funds in an industry that is collectively estimated to post a $2 billion (Rs9,520 crore) loss this fiscal year, mainly due to high jet fuel cost and overcapacity in the market.
Mubadala manages a multi-billion-dollar portfolio of regional and international investments, and focuses on developing and managing an extensive and economically diverse portfolio of commercial initiatives. According to its website, Mubadala’s commercial strategy is fundamentally built on long-term capital-intensive investments that deliver strong financial returns.
Mubadala has made several investments in aviation, having announced in February a $500 million investment to build a composite aerostructures plant in Abu Dhabi.
12/11/08 P.R. Sanjai and Tarun Shukla/Livemint

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Categories: Foreign Nov 2008, Jet Airways Nov 2008, New Nov 2008