Airlines India, Indian Airlines

6/11/2006

Spicejet to raise $80 mn for expansion

Filed under: — Airline India @ 6:19 pm

The low cost airline has appointed UK based investment banker Morgan Stanley to prepare a detailed plan for raising upto $80 mn from overseas marktet for its proposed expansion plans including fleet induction.

The airline has already signed a sale and lease back agreement for purchase of 5 Boeing 737-800 aircrafts and 5 Boeing 737-900 aircrafts. The aircrafts are valued at a purchase price of $1.1 billion.

The funds can be raised through foreign currency convertible bonds and issue of fresh equity shares. The airline may plan a rights issue in the coming months.

Last year also the company had raised $80 mn from overseas through foreign currency convertible bonds and about $42 million of it was brought in by Goldman Sachs.

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