The Hindu Business Line : UAE co invests more in SpiceJet

Earlier this year, Istithmar invested $12.5 million in SpiceJet. The stake rise comes through SpiceJet's recent issue of Foreign Currency Convertible Bonds (FCCB).

According to a report by the official Emirates News Agency, WAM, Istithmar's investment in SpiceJet, its first in India, reflects the group's long-term plans in the aviation industry in India. The investment is in line with the group's strategy of identifying projects with a strong potential for growth and success.

In his comments, Sultan Ahmed Bin Sulayem, Executive Chairman of Istithmar said: "We see immense potential in the Indian aviation sector. Istithmar is bullish on low-cost carriers in India with the current spate of reforms and the gradual shift to a more open skies policy.

"In addition, the economy is embarking on a steady path of long term growth and we see an opportunity for Istithmar to play a role in the development process."

"SpiceJet's mission is to become India's preferred low-cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers and we see our interest in SpiceJet as a long-term strategic investment," he added.

Istithmar is a major investment house based in the UAE focusing on private equity, real estate, and alternative investments.

It was launched by The Corporate Office and The Ports, Customs and Free Zone Corporation (PCFC) with an investment programme of Dh7.3 billion (Rs 8,987 crore). Its affiliate companies include Nakheel, Dubai Metals and Commodities Centre and Tejari.