Wednesday, January 24, 2007

SpiceJet will boost wingspread

Kolkata: Low-cost carrier SpiceJet, which recently mopped up $64.5 million through a preferential allotment, is now busy drawing up strategies for its next round of funding, post 2008.
The company plans to raise $650 million for funding the acquisition of 10 more aircraft in 2009, to feed its network expansion. According to company sources, the carrier could approach the American Exim Bank for financing 85% of the quantum of $650 million while the balance 15% could be raised through a fresh round of private equity infusion.
Sources told DNA Money: “We may approach the American Exim Bank because of the attractive 2.5% interest rate …. Private equity participation could be one of our options for raising the balance funds.”
23/01/07 Madhumita Mookerji/Daily News & Analysis