Etihad Airways, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles and Alitalia recently raised $500 million in a platform financing transaction, which, combined with the success of an award-winning bond last year, brings their total to $1.2 billion.
"With this second successful transaction, the international financial markets have continued to show their belief in the Etihad Airways Partners story,” James Hogan, president and CEO of Etihad Aviation Group, said. “Our equity partner strategy is creating a total which is greater than the sum of its parts, a grouping which can work together to improve revenues, reduce costs and uncover exciting new business synergies.”
The funding will mostly go toward capital expenditure and fleet investment. Dependent on the needs of the individual airlines, some of it will also be used for refinancing. The partnership shared its vision for the group, including growing network connection, business synergy projects and revenue development initiatives with investors at road shows in Abu Dhabi and Dubai and investor calls with markets in London, mainland Europe and Asia.
"This transaction shows the strength of that grouping, as well as the strength of the individual members," Hogan said. "This second tranche of combined fundraising is part of our long term capital strategy."