Financial Daily from THE HINDU group of publications
Friday, Mar 17, 2006
Financial Daily from THE HINDU group of publications Friday, Mar 17, 2006 |
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Corporate
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Overseas Borrowings Logistics - Airlines Jet Airways defers FCCB, GDR issues Our Bureau
New Delhi , March 16 Jet Airways, which expects to get all Government clearances soon for its acquisition of Air Sahara, has decided to delay its $850-million foreign currency convertible bond (FCCB) and global depository receipts (GDR) issues. "The FCCB is expected in May this year. The important thing is that both are planned this year itself," said Mr Carl Saldanha, Chief Financial Officer. The airline, which had earlier expected to complete the FCCB and GDR issues by the end of March, has decided to delay them because it was not getting the right price. Jet Airways recently raised funds locally from ICICI Bank and IDFC to make the pre-delivery payments for aircraft it is acquiring. "The borrowings were to the tune of $400 million. The funds from ICICI Bank will be used for acquisition of Boeing aircraft while IDFC funds will be used for pre-delivery payments on the Boeing 737 aircraft," Mr Saldanha said. The airline has ordered 30 aircraft at a total cost of $2.5 billion. Confirming that a letter on the acquisition of Air Sahara had been received from the Monopolies Restrictive Trade Practice Commission (MRTPC), he said that the questions raised were standard questions. "We will be replying to the queries. However, we do not anticipate any major issues in the acquisition being cleared by the Government. We expect to get all the approvals in the next couple of weeks." Last week the airline started hedging on the aviation turbine fuel that it uplifts. "We hedged on 10,000 barrels of fuel last week. The amount that we have hedged on is a fraction of what we are allowed to," he added.
More Stories on : Overseas Borrowings | Airlines | Jet Airways (India) Ltd
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