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Jet Airways raises $150M syndicate loan from Gulf lenders

Private carrier Jet Airways today said it has concluded a five-year syndicated loan facility of USD 150 million (over Rs 950 crore).

The loan facility was fully subscribed to by banks spread across the Middle East region, the airline said in a release.

Mashreqbank was the sole initial mandated lead arranger and book runner for the transaction, it said, adding the lending banks include from Dubai, Abu Dhabi, Bahrain and Doha-based financial institutions.

This syndicated loan facility will be instrumental in underpinning the airline on its progressive path, Jet Airways chief executive Cramer Ball said, adding, "we will continue to build on the strong foundation as part of our three-year turnaround plan." 

"The successful closure of this transaction is clear evidence of the growing liquidity available from the Middle East, favouring large leading Indian corporates," Mashreqbank's head of international banking group John Lossifidis said.

Ratings firm ICRA had recently upgraded rating of Rs 3,210-crore loan facility given to Jet Airways, in which gulf carrier 

Etihad holds 24 per cent stake, based on improvement in cash flows.

Jet Airways had cut its consolidated loss by a whopping 95.7 per cent at Rs 43 crore in the three months to September against Rs 999 crore in the year-ago period, on the back of spurt in operational efficiency.

However, on a standalone basis, the Naresh Goyal-promoted airline flew back into profit with a net income of Rs 69.82 crore against a net loss of Rs 891 crore in the year-ago period.

Alpen Capital acted as financial advisors to Jet Airways for the transaction, the release said.

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