Jet may go ahead with FCCB issue despite uncertain market

Mumbai: Jet Airways has begun preliminary work on its proposed issue of foreign currency convertible bonds (FCCB), a senior official said on Thursday.
Asked about issue size, he said: "it is too early to say anything." The size and timing of the exercise including details such as coupon rate and conversion price would all depend on what the banks' advice. MFs too bear the brunt
But it is understood the company does not see the recent meltdown in Indian share values as a reason to postpone the offering.
At its press briefing of April 29, Jet Airways had disclosed that the company's planned $2.5 billion fleet augmentation programme would be backed by two separate instalments of fund raising - a $500-million FCCB issue by end-May and later, a $300-million domestic equity raising exercise.
In the aftermath of last week's stock market crash with near continuous days of steep fall in market indices, senior corporate officials had expressed worry over imminent IPOs and FCCBs.
27/05/06 Business Line/Sify

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