Tuesday, October 17, 2006

SpiceJet to raise $80 mn from overseas

New Delhi: Low-cost air carrier Spicejet will raise about $80 million from overseas markets to fund its expansion and fleet induction initiatives. The airline has engaged UK-based global investment banking firm Morgan Stanley to prepare a detailed plan for the fresh fund-raising exercise.
Investment banking sources tracking the development said the funds would be raised through a combination of foreign currency convertible bonds (FCCBs) and issue of fresh equities.
“The fresh equity issued could either be in the form of a rights issue or preference shares, and is expected to be floated by December,” a merchant banking source told Hindustan Times on condition of anonymity.
Spicejet officials refused to comment citing regulatory guidelines.
16/10/06 Gaurav Choudhury/Hindustan Times