September 16, 2015 / 9:42 AM / 4 years ago

Etihad Airways Partners raises $500 mln in debut bond

DUBAI, Sept 15 (Reuters) - Etihad Airways Partners, a funding vehicle for Etihad Airways and airlines in which it has equity stakes, priced its $500 million debut bond issue on Tuesday at 6.875 percent, a document from lead arrangers showed on Wednesday.

Final pricing for the five-year bond was narrower than its initial price guidance of 7 percent.

Goldman Sachs, ADS Securities and Anoa Capital arranged the transaction.

Almost 20 percent of the funds raised will each go to Etihad Airways, Etihad Airport Services, airberlin and Alitalia, 16 percent will go to Jet Airways, and the remainder to Air Serbia and Air Seychelles, Etihad Airways said in a statement.

“A key element of 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,” said James Hogan, Chief Executive Officer of Etihad Airways.

Funds raised will be used largely for capital expenditure and investment in its fleet, as well as for refinancing, depending on each individual airline’s needs, it added. (Reporting by Archana Narayanan, editing by Louise Heavens)

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