SpiceJet seeks RBI approval to raise $270 mn

New Delhi: Budget carrier SpiceJet Ltd has sought clearance from the Reserve Bank of India (RBI) to raise $270 million (Rs.1,212 crore) from Canada’s export finance agency Export Development Canada (EDC) for financing fleet expansion.
SpiceJet, which uses 29 Boeing Co. B737 aircraft for 192 daily flights to 23 cities, plans to add 15 Canadian-manufactured Bombardier Q400 short-haul aircraft from July to connect more cities.
“There is a clearance to raise $270 million from EDC, which is the equivalent of US Exim Bank. RBI approvals are likely to come soon,” said a person familiar with the development who asked not to be identified.
A second person, who also didn’t wish to be identified, said the carrier will do an “outright purchase” of the aircraft and funding for 15 planes has already been tied up.
SpiceJet had ordered 15 Q400 aircraft last year with the option of 15 additional Q400s, the first official said. The order for the second lot is yet to be confirmed.
Airlines typically take loans for buying Boeing aircraft from the Exim Bank in the US, which provides a cheaper rate of interest, while Airbus SAS aircraft are funded from similar export agencies in Europe.
24/06/11 Tarun Shukla/SpiceJet

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Categories: spicejet Jun 2011